Last week was a busy one in the fintech world, with several significant developments. Among them, Clair, a fintech startup, raised substantial funding for its innovative approach to on-demand pay. Meanwhile, Deel, a fintech-turned HR decacorn, defended allegations of misclassifying employees as independent contractors. And Mercury, a banking services startup, shared exclusive post-SVB growth numbers.
Clair Raises Funds for On-Demand Pay Solution
Clair, a fintech startup, raised $25 million in equity funding and announced $150 million as part of a new consumer lending program from partner bank Pathward. Clair’s unique approach to on-demand pay involves helping workers get paid immediately after completing a shift. The company has already partnered with 10,000 employers and aims to improve employee retention by providing modern solutions to employers.
Deel Responds to Allegations
Deel, a fintech-turned HR decacorn, faced allegations from Senator Steve Padilla that it had misclassified hundreds of employees as independent contractors, thereby denying them employment benefits and labor protections. Deel denied the allegations, calling them “completely made up and regurgitated from old news.” The California Secretary of Labor, Stewart Knox, responded that his office would look into the information provided by Padilla.
Mercury Shares Post-SVB Growth Figures
Mercury, a banking services startup, shared exclusive post-SVB growth figures. Despite the collapse of SVB, Mercury has seen a surge in customers, demonstrating the resilience and adaptability of the fintech sector.
In other news, Maza, a fintech company that helps undocumented immigrants gain access to the U.S. financial system, responded to allegations challenging some of its claims. Maza updated its website and app for further clarity around eligibility and compliance and clarified its charges and services.
As the fintech landscape continues to evolve, these developments highlight the sector’s dynamism and the ongoing challenges and opportunities it faces.