Grazzy Raises $4.3M for Hotel Digital Tipping Fintech Platform
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MyInterview wants to help the hospitality industry recruit employees, and Grazzy wants to help retain them.
Justin Dawes
Two tech startups involved in the travel industry raised $15.3 million this week.
>>Grazya financial platform that enables digital tipping and same-day pay for the hospitality industry, has raised $4.3 million in seed funding from Next Coast Ventures and Tuesday Capital.
The capital will be used to accelerate business growth with major hotel brands and operating groups, restaurant groups and lounges, the company said. It will also go towards improving the integration between the Grazzy software and the operational software used by clients.
Texas-based Grazzy said its platform provides instant access to same-day revenue for employees at hotels, bars, restaurants and salons. Grazzy said it also helps with back office efficiency through automated payments, and it claims to have the lowest processing fees in the market. The platform also enables guests to provide feedback.
Hotel Abri, a Grazzy client in San Francisco, said wages for 20 percent of its housekeeping staff effectively increased by up to $2 per hour in the first 60 days of using the platform, and there was a 20 percent organic increase in service points.
Due to today’s increasingly cashless economy, hospitality workers often have to wait to receive tips paid by credit card. The Grazzy platform provides instant access to these digital tips, which is one of the ways the startup said its product is meant to improve employee retention and recruitment.
“Even as hourly rates rise, we know cash restrictions have meant significantly less income for service industry workers who rely on tips to supplement their hourly wages. We’re on a mission to fix that,” said Russell Lemmer, Grazzy founder and CEO , in a statement. “Our digital, employee-centric platform helps these people earn more money, spend it the same day, and save and spend in better ways.”
>>My interview, a video job interview platform expanding in the hospitality industry, has raised $11 million in Series A funding. It was led by Aleph, Entrée Capital and Jesselson Family Office, with participation from SeedIL Ventures, Digital Horizon and Ocean Azul Partners.
Israel-based MyInterview said the hospitality sector is among its strongest clients right now, especially with increasingly high turnover from the youngest generation of workers. Hospitality clients include hotel brand Hyatt, Singapore-based travel agency Agoda and theme park company Six Flags.
The funding will go toward expanding its technology product, which the startup said uses artificial intelligence to identify the best workers and reduce hiring time by 70 percent.
MyInterview also said Amalia Bercot has been hired as co-CEO.
| Company | Stage | Lead | Raise |
|---|---|---|---|
| Grazy | Seed | Next Coast Ventures and Tuesday Capital | 4.3 million dollars |
| My interview | Series A | Aleph, Entrée Capital and Jesselson Family Office | 11 million dollars |
Change Cheat Sheet
Seed capital is money used to start a business, often led by angel investors and friends or family.
Series A funding is usually obtained from venture capitalists. The round aims to help a startup’s founders ensure that their product is something customers really want to buy.
Series B Funding is mainly about venture capitalist firms that help a company grow faster. These fundraising rounds can help recruit skilled workers and develop cost-effective marketing.
Series C financing is usually about helping a business expand, for example through acquisitions. In addition to VCs, hedge funds, investment banks and private equity firms often participate.
Series D, E and beyond These mostly mature businesses and the funding round can help a company prepare to go public or be acquired. A number of types of private investors can participate.
