Vietnam earned-wage access firm Gimo eyes profitability by 2028

Gimo founders Quan Nguyen and Ngoc Nguyen / Photo credit: Gimo

Earned-wage access (EWA) has been gaining traction over the past few years, especially since the pandemic hit. It was estimated that US$9.5 billion in salaries were disbursed through EWA systems worldwide in 2020.

However, the payment model has been hit with its fair share of criticism, including those over bad-loan risks and high premiums. It has also been pointed out that instant payments can make it difficult for workers to budget and save over the long term.

Gimo, an EWA player in Vietnam, believes that the model’s benefits can outweigh its risks.

“Currently embracing the B2B2C business model, we work with employers and labor unions to set a certain percentage of earned pay that a user can draw down, minimizing bad loans,” Quan Nguyen, Gimo’s co-founder and CEO, told Tech in Asia in an email interview.

EWA allows workers to collect their salaries before their regular payday. These firms automate that process in exchange for a small withdrawal fee. In some cases, employers absorb the cost of early wage payments.

When payday arrives, employers transfer their employees’ salaries to the EWA startup to settle the balance.

See also: Disrupting the paycheck in SEA: a billion-dollar market with social impact?

Gimo recently raised US$5.1 million at the first close of a series A round. It said that it is also currently raising debt capital.

Now, the startup is looking to be profitable by 2028.

Gimo said that over the past year, its revenue climbed 24x while its transaction volume grew 11x. It estimates that about 500,000 workers access its platform.

The startup said it partners with major banks and local labor federations to increase awareness for local blue-collar workers about EWA.

“We wouldn’t say employees and employers have to depend on it,” Nguyen says. “We want our users to keep in that they can turn to on-demand pay as a safe and affordable rainy-day fund when things go sideways.”