Grazzy, a next-gen employee payments platform, announced that it raised $4.25 million in Seed funding to fuel the rapid expansion and growth of its digital tipping, same-day pay services, and inclusive banking capabilities.
Grazzy’s recent funding round was supported by Next Coast Ventures and Tuesday Capital.
With its completion, Grazzy that helps hotels, bars, restaurants and salons improve employee retention and recruitment by increasing wages, unlocking instant access to same-day earnings, and offering more inclusive financial wellness for hourly employees, now has total Seed funding of $6.8 million.
The additional capital will allow Grazzy to accelerate its growth across large hotel brands and operating groups, restaurant groups, and salons that are looking for modern ways to improve employee experience at a reduced cost.
Also, this will support the continuation of seamless integrations between the Grazzy platform and the major systems (PMS, HMA, and POS) that most hospitality and service businesses rely on to run their operations.
To date, many of the world’s biggest and most beloved hotel brands are leveraging on the Grazzy platform to enable digital tipping, same-day pay, and in-the-moment positive feedback for their team members.
By placing employee satisfaction at the center of the experience, Grazzy helps create happy employees who prefer to stay in their jobs longer as they also make an effort to provide better guest experience.
“The annual cost of voluntary hourly staff turnover for US businesses is over $100B, with most leaving for financial reasons. By addressing the financial wellness of those employees, we can reduce turnover and improve lives,” said Grazzy Founder and CEO Russell Lemmer.
Lemmer said even if the hourly pay rates are increased, cash constraints still mean less earnings for service industry workers who depend on tips to supplement their hourly wages.
Grazzy is on a mission to fix this with their digital, employee-centric platform that helps these workers earn more money, use these on the same day, and save and spend in better ways.
Thomas Ball, Co-Founder and Managing Partner of Next Coast Ventures, said there is a clear need for a digital solution that will help improve the lives of the hourly workers in the hospitality industry.
Grazzy’s ability to serve these complex needs of the enterprise and deliver at scale makes the company the most powerful player in the market today, he added.
The Grazzy platform offers the modern familiarity of P2P payments experience that guests love, but with the enterprise-level branding, compliance and reporting that’s required to successfully deliver ROI at scale.