Fintech startup raises seed funding to help unbanked migrant workers

Photo credit: onda / 123RF.

Singapore-based FlexM announced today it has raised seed funding to the tune of US$886,000. The funding comes from Singaporean mobile payments provider MatchMove, with whom FlexM has inked a partnership deal, and a number of undisclosed private investors.

The startup offers its customers an ewallet that can be used for payroll, money remittance, and e-shopping. FlexM’s service includes a virtual prepaid MasterCard and up to four physical copies. It claims to offer more affordable remittance rates than established services like Western Union.

Companies can use FlexM to create virtual wallets for the workers they hire.

Companies can use FlexM to create virtual wallets for the workers they hire. This way, employers can pay salaries and generate proofs of payment without incurring high administrative costs. They also get access to an online platform that offers features like payroll history and analytics.

FlexM developed its ewallet and virtual MasterCard service in collaboration with MatchMove.

The startup says signing up for its service is easy and fast. It requires an ID card, proof of local address, an email address, and a mobile number. Users can verify their identity face-to-face and pick up their physical MasterCards at physical outlets in Singapore’s Lucky Plaza or City Plaza malls.

FlexM competes with Singapore-based Toast, which also provides a virtual wallet for immigrant workers, allowing them to send money from Hong Kong to the Philippines at a fixed rate. However, Toast is focused strictly on remittance services and doesn’t deal with payroll and business-to-business services at the moment. Last week, it raised a pre-series A round worth US$1.5 million.

Converted from Singapore dollars. US$1 = S$1.41