Next-gen employee payments startup Grazzy raises $4.25m to power hospitality's future of digital tips
Grazzy, a next-gen employee payments platform, announced a $4.25 million seed funding from Next Coast Ventures and Tuesday Capital to fuel expansion and growth of its digital tipping, same-day pay, and better, more inclusive banking capabilities. The completion of the seed round brings Grazzy's total Seed funding to $6.8 million.
Grazzy helps hotels, bars, restaurants, salons and more improve employee retention and recruiting by increasing wages, unlocking instant access to same-day earnings, and offering more inclusive financial wellness for hourly employees. By putting employee satisfaction at the center of the experience, Grazzy creates happier employees who stay in their roles longer and provide better guest experiences.
Today, several of the world's biggest and most beloved hotel brands are leveraging the Grazzy platform to enable digital tipping, same-day pay, and in-the-moment positive feedback for their team members. Grazzy offers these customers digital tipping enablement at no cost and the lowest fees in the market.
This latest infusion of capital will be used to accelerate growth across large hotel brands and operating groups, restaurant groups, and salons looking for modern ways to improve the employee experience, while reducing costs. Additionally, this funding 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.
Russell Lemmer, Founder and CEO, Grazzy: "The annual cost of voluntary hourly staff turnover for US businesses is over $100 billion, with most leaving for financial reasons. By addressing the financial wellness of those employees, we can reduce turnover and improve lives. Even as hourly pay rates increase, we know that cash constraints have meant meaningfully less earnings for service industry workers who depend on tips to supplement their hourly wages. We're on a mission to fix that. Our digital, employee-centric platform helps those folks make more money, use it the same day, and save and spend in better ways."
Thomas Ball, Co-founder and Managing Partner, Next Coast Ventures: "There is a clear need in the market for a digital solution that helps improve the lives of hourly workers in the hospitality industry. Grazzy's ability to serve the complex needs of the enterprise makes them unique to the landscape. The product and the team's proven ability to deliver at scale makes Grazzy the most powerful player in the market today."