In Africa, many people get paid once a month. But what if you need money before your next paycheck? In the past, an employee had to borrow money from a bank or company. But these choices can be costly and take a long time.
That’s where companies that make it easier to get paid come in. These companies let their workers take out a part of their pay before payday. This can be a lifesaver for employees with unplanned costs or needing extra money.
Zofi Cash, a Ugandan fintech startup that just got $1 million in pre-seed funding from Advancly, is part of a growing wave of African earned-wage access startups that let workers access a portion of their earnings before payday.
Zofi Cash was started by Paul Kirungi and Gordon Turibamwe in 2021. Users can request up to 50% of their monthly salary as an advance through a web app. If their boss agrees, the money is sent to their bank account or mobile money.
Zofi Cash has helped with more than $300,000 in transactions in the past year. This shows its good performance and helps it get funding in a challenging investment environment.
Zofi Cash has only been able to help about 3,000 people so far, even though it has more than 20,000 people on its waiting list. With the new funding, which was borrowed, the startup will be able to grow and reach more people.