African fintech closes $4m Series A funding round











Nigerian fintech Earnipay has closed a Series A funding round, raising $4m.

Nigerian fintech Earnipay has closed a Series A funding round, raising $4m.

O’Melveny & Myers provided legal advice to Earnipay on the transaction, which was announced on February 17.

The funding round was led by venture capital firm Canaan and included participation from Musha Ventures, Ventures Platform, Village Global, Voltron Capital and XYZ Ventures.

Earnipay, headquartered in Lagos, leverages technology to provide access to already earned wages before payday, sometimes defined as an Earned Wage Access (EWA) service, and also offers financial education.

According to a study cited by Canaan, EWA solutions are “a natural choice in Africa” ​​since they “[enable] employees to avoid late fees for things like housing and loan repayments” and offer an alternative to punitive payday loans.

Founded in 1987, Canaan targets investments in early-stage companies in the consumer technology, fintech and life sciences sectors. It has raised $6 billion to date across 12 funds. Earnipay is its fourth African holding company.

O’Melveny used a team led by mergers and acquisitions partners Brian Covotta and Warren Lazarow.

Last December, Charles Russell Speechlys advised data science firm FairXchange on the sale of a 25% stake to United Fintech.

Comments are closed.