How Clair Works and Effectiveness of Concept
Fintech startup Clair provides hourly or gig workers their pay immediately following the completion of their work by partnering with the freelance platform or HR tech company that employs them. The fintech startup can do this by serving as a middle man between a user and its employer. Clair shows a user what kind of advance can be received from a shift or specific freelance gig and then deduct it from the next scheduled payday if the user chooses to accept.
For workers, this can be a huge benefit. Especially for those experiencing financial distress, eliminating the need to wait for pay can help pay bills on time, get food when needed, and reduce the possibility of taking out a predatory loan to stay afloat.
For a business, the use of Clair can be equally beneficial. In fact, the fintech startup can help a company become a more attractive place to work for employees. More importantly, the fintech startup has proven to reduce employee turnover by 20% to 40%, dramatically reducing overall business costs. Additionally, instant payday gratification has been shown to create more engaged employees by reducing financial stress.
The fintech business takes on 100% of the risk, thereby ensuring that the freelance platforms or HR tech companies that use Clair’s service will not lose money. Clair also provides a host of financial tools to users including possible spending and savings accounts, as well as a Clair debit Mastercard.
Clair Funding and Future Plans
In the Series A funding round for the business, Clair raised $15 million in capital. The funding round was led by Thrive Capital. This brings the total funding for the company up to $19.5 million after a seed round led by Upfront Ventures seven months ago.
The new funding will help the company expand business by partnering with more employers and freelance platforms. Clair will also make efforts to increase the size of its user base.
When commenting on the latest funding round for the startup, Clair CEO Nico Simko said, “Thrive Capital is one of the most experienced VC firms around when it comes to backing game-changing fintech businesses. Their investment is a testament to the way the Clair team has built a rock-solid business with enormous growth potential. We’re on a mission to give workers easier, faster access to their hard-earned cash. We want to promote financial inclusivity for everyone, and we are doing this by enabling existing HR tech providers through innovative fintech tools. This fundraising round gives us the runway we’ll need to expand our operations and realize that vision on a larger scale.”
About the Author
Tom Price is a writer focusing on entertainment and sports features. He has a degree from NYU in English with a minor in Creative Writing. He has been previously published for Washington Square News, Dignitas, CBR, and Numbers on the Boards.