Vietnam-based fintech startup GIMO, which seeks to provide flexible salary payments to blue-collar workers, has completed its Series A funding round, raising $17.1 million.
The final closing, comprised of a mixture of equity and debt financing, is led by venture fund TNB Aura, with participation from the company’s existing backers including Integra Partners, Resolution Ventures, Blauwpark Partners, ThinkZone Ventures, and Y Combinator, according to a press release of the company.
“We look forward to working closely with the GIMO team in breaking down barriers to financial inclusion for millions of blue-collar workers across Vietnam,” said Charles Wong, founding partner of TNB Aura.
GIMO offers near-instant payroll to blue-collar workers whenever they need it.
It allows employees to access their earned salary via a mobile app integrated with the company’s payroll system. Users can also keep track of their workdays and daily earnings.
GIMO currently serves 500,000 workers from medium to large-sized multinational manufacturing companies across Vietnam.
Despite the economic slowdown in 2023, the company has demonstrated a solid growth rate of 15% and is on track to reach 2.5 million underbanked employees by 2025.
The funding will be used to develop its products, increase customer experience, and establish strategic partnerships.
Research by professional services firm KPMG in 2022 showed that an average user draws their earned pay two to three times per month, almost simulating bi-weekly and weekly pay.
A flexible pay cycle takes the burden off blue-collar workers’ shoulders by helping them pay for financial emergencies and everyday bills.