Salaryo raises $5.8 mn in funding to provide COVID-19 financing relief for SMEs
By Pavithra R
New York-based Salaryo providing flexible financing plans to small businesses for a small and affordable monthly fee, has announced that the company has raised $5.8M in funding from Techstars Ventures, Variant Investments, Dubai-based private equity fund KEN Investments, and Michael Ullmann’s investment group, raising its total funding to $12M.
Salaryo provides fully-digital business term loans and lines of credit for small businesses. According to company data, the firm has successfully provided financing to several entrepreneurs and freelancers since its foundation in 2017. During the pandemic, Salaryo accelerated its growth by offering cash flow relief to small businesses in selected business categories, processing over $60M in loan applications year to date.
“This investment round propels Salaryo’s evolution from a niche player into a fintech banking partner for small businesses, at a time that small business owners need us the most. This year we have expanded our offering with business term loans, providing cash flow flexibility and relief during COVID-19. Our next big step in the materialization of our vision to be the Bank of the Future of Work is planned for next year, when we launch a suite of digital banking products that are designed for cash flow volatility and income uncertainty,” said Yair Levy, CEO, and co-founder of Salaryo.
The FinTech is planning to use the investment to propel the growth of its SME lending activity and to launch new business banking products in the coming year. The firm’s lending technology features a fully automated experience, featuring KYC (Know Your Client), payment processing, financial and professional analysis, and e-signatures, to make a decision in minutes.
“COVID-19 has accelerated the digitization of financial services. FinTech companies such as Salaryo provide opportunities to generate alternative return streams in a dynamic environment. Salaryo’s team possesses the financial acumen and advanced technology that give Variant an edge in getting exposure to unconventional income-generating assets in the specialty finance category,” said Curt Fintel, Principal at Variant Investments.
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