UAE-Based Fund Invests In Israeli Fintech Startup Salaryo
Israeli fintech firm Salaryo, a platform that provides freelancers and small businesses with access to instant, flexible and affordable financing, has raised $5.8 million in funding.
Participants in the fundraising round include Dubai-based private equity fund KEN Investments, Variant Investments, Techstars Ventures and Michael Ullmann’s investment group.
Founded in 2017, Salaryo provides digital business loans and lines of credit for small businesses. The company has provided financing to hundreds of entrepreneurs and freelancers, sending funds within 24 hours. Based, in New York City with an R&D center in Tel Aviv, Salaryo graduated from the Barclays Techstars FinTech accelerator in 2017.
This latest round brings the company’s total funding to $12 million. Salaryo said it will use the funds to propel the growth of its small business lending activity and to launch new business banking products in 2021.
In general, the COVID-19 pandemic has had a negative effect on the small business sector. During the crisis, the company said it accelerated its growth by offering cash flow relief to small businesses in selected business categories, processing over $60 million in loan applications year to date.
One positive that has come from COVID-19 pandemic is the accelerated digitization of financial services.
“Fintech companies such as Salaryo provide opportunities to generate alternative return streams in a dynamic environment,” said Curt Fintel, principal at Variant Investments. “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.”
“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,” said Yair Levy, CEO and co-founder of Salaryo. “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.”