FlexxPay, a Fintech company with offices in the GCC and Europe, focusing on employee benefit solutions, announced that MEC Ventures, a newly established vehicle created jointly by MSA, a Chinese venture capital fund with more than US$1 billion of assets under management together with Bahrain based Al Salam Bank, has invested in FlexxPay’s pre-series A funding round.
The new funds will accelerate FlexxPay’s ambitious growth plans for the region, particularly in the Kingdom of Saudi Arabia and the United Arab Emirates, enabling the company to execute quickly on its planned tech developments and new platform features for its ever-increasing corporate clientele base.
Michael Trüschler, Co-Founder & CEO, FlexxPay said, “We are very grateful of MEC Venture’s trust and confidence in the corporate appeal and scalability of FlexxPay’s business model and growth potential across the MENA region and beyond.”
Trüschler added, “With FlexxPay’s mobile app, access to earned salaries and commissions is just a few fingertips away for employees. This fast-growing business model has attracted a lot of interest from venture capitalists globally. MSA with their deep experience in mobile-first business models from Asia and Al Salam Bank with their financial strength and expertise will be a great value addition for FlexxPay.”
MSA has invested over $1b in the last four years in AI, genomics, mobility, and SaaS companies. Their portfolio includes Meituan, Didi, Mobike, NIO, Beijing Genomic Institute, Zhaogang, Tuija, and Mogujie. MSA partnered with Al Salam Bank-Bahrain to launch MEC Ventures, a $50 million (Dh183.6m) venture capital fund designed to introduce new technologies and business models from Asia to the Middle East.
Ben Harburg, Managing Partner at MSA said, “We believe that the region presents an ideal mix of investment conditions and market upside. We view FlexxPay as incredibly sticky, a modular platform that fulfills a critical pain point in the enterprise ecosystem in MENA and enables its companies and their employees to access an extensive suite of underpenetrated financial facilities”.
Employee wellness and motivation in the workplace is quickly rising to the top of company agendas worldwide as it directly relates to employee productivity, retention rates and sales of the business. Financial stress is a key issue for employees with many living from pay-day to pay-day.
According to FlexxPay calculations, if you combine exit costs, lost productivity, lost expertise, as well as recruitment, orientation and onboarding costs, a company of about 500 employees, can save an estimated $200,000 a year.
FlexxPay provides a cloud-based technology solution that improves employee productivity, retention rates and sales for businesses by removing financial stress from employees and giving them instant access to earned salaries and commissions. With FlexxPay, employers can directly invest in their most valuable asset, their employees. The platform can be accessed through web, mobile App and WhatsApp.
This investment by MEC Ventures follows FlexxPay recent announcement of the launch of a new Innovation Centre in Lebanon and a partnership agreement with a major Saudi financial institution, as well as onboarding other leading regional investors and VC funds.
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