Indonesian financial wellness platform GajiGesa has announced a partnership with employee management platform Gaji.id to expand the reach of its on-demand pay solutions to over 1,000 companies in the next 12 months.
The collaboration would enable workers to access their earned wages directly from the Gaji.id application while employers can manage workers’ data from the same platform.
Backed by software developer company Sofco Graha with over 30 years of experience, Gaji.id processes payroll and maintains employee data such as attendance, incentives, health insurance, and taxes.
“We believe this integration will effectively address the needs of employees in accessing fast funds without any added fees,” Gaji.id CEO Happy Moeljo said in a statement.
GajiGesa raised $6.6 million in a pre-Series A round led by MassMutual Ventures with the participation of January Capital, Wagestream, Bunda Group, Smile Group, Oliver Jung, and other angel investors. The latest funding put the total money raised by GajiGesa at $9.4 million to date.
GajiGesa founder and CEO Vidit Agrawal recently told DealStreetAsia that the firm had enough cash to fuel various product developments, including piloting savings offerings, and expansion before raising money again next year.
GajiGesa claimed to have grown its business by 300% in the first six months of this year on the back of strong momentum in 2021 and the company’s pre-Series A funding last year. It also managed to onboard more than 250 companies to date, serving hundreds of thousands of employees in Indonesia.
Since the beginning of its operations in mid-2020, GajiGesa’s platform claims to expand financial resilience for workers and enables partner companies to effectively and easily manage their workforce and cash flow.
Their wellness solution is built around Earned Wage Access (EWA) which enables employees to withdraw their earned salary on-demand and ahead of the month-end pay cycle. This simple solution, Agrawal said, managed to reduce reliance on predatory lenders and fraud.
GajiGesa earns revenue by charging a fee for its service but the structure depends on each project. For employees, benefits offered by GajiGesa are often free as many employers absorb the cost.
Indonesia’s total workforce is estimated to be 144.01 million as of February 2022, according to Indonesia Statistics Bureau data. Of the 94% of the workforce who already have a job, nearly 60% are informal workers and a significant number are considered blue-collar workers.
Other companies who operate in the same space include SME-focused SaaS startup Mekari, which recently announced the launch of its EWA offering. The company has so far raised $71 million from investors such as East Ventures, BEENEXT, Money Forward, and others.
Besides Mekari, GajiGesa also competes with another financial wellness platform Wagely which has amassed $13.9 million from investors including Wast Ventures, Integra Partners, ADB, 1982 Ventures, and others.