Vietnamese flexible payroll app secures $3m in seed funding

The gig economy has been growing rapidly over the past few years, riding on the back of rising internet penetration and cheaper consumer electronic devices and tools. Gig workers also get to do their jobs for daily pay and enjoy a more flexible schedule.

With gig workers representing roughly 35% of US workers in 2020 – compared to just between 14% and 20% in 2014 – the Covid-19 pandemic has no doubt pushed this growth further.

Offering employees flexible pay similar to the gig economy, while attractive in terms of worker retention, remains a challenge for companies due to technology and administrative burdens as well as cash flow issues. This is what former Uber Vietnam general manager Dzung Dang aims to solve with Nano.

The Nano team / Photo credit: Nano

Founded last year, Nano enables companies to offer flexible payments to their workers through its payroll platform VUI. The app also helps employees keep track of attendance, receive announcements from their employers, and learn the basics of personal financial management.

This concept helped the company win the support of Y Combinator, and Nano claims it’s the first homegrown Vietnamese startup to be selected by the US accelerator.

Now, the company has raised US$3 million in its seed round from a slew of investors, including Golden Gate Ventures, Venturra Discovery, FEBE Ventures, Openspace Ventures, and US-based Goodwater Capital.

Nano said VUI, launched just six months ago, now serves over 20,000 employees from organizations in Vietnam including GS25, LanChi Mart, and Annam Gourmet. According to the company, roughly 50% to 60% of employees would sign up for the app and use the service about 3x a month to receive early salaries.

“Given the ubiquity and acuteness of the cash flow mismatch problem for the working people, more frequent payroll is not only good for low-income workers but also a tactical yet underappreciated initiative that employers could deploy to stand out in the labor market,” said Dang.