Grazzy Digital Payments Platform Closes $4MM Seed Round

News provided by

Jul 25, 2024, 08:41 ET

Grazzy increases financial wellness across hospitality and service industries with its same-day-pay, banking and tipping solutions for any size business

AUSTIN, Texas, July 25, 2024 /PRNewswire/ -- Grazzy, the digital payments platform for hospitality and service-focused businesses today announced the completion of a $4MM Seed round with participation from AZ-VC, In Revenue Capital, Iron Skillet Partners, Tuesday Capital, and Next Coast Ventures. The latest funding will help Grazzy expand its team, accelerate new customer onboarding, and scale partnerships, integrations and go-to-market strategies to continue the company's exponential growth.

Grazzy has grown its customer base 100x in the last 18 months, a reflection of confidence in the hospitality market that digital tipping is a powerful tool for labor retention, and that Grazzy's uniquely flexible and scalable solution is the best fit for large enterprises. That enterprise trust in Grazzy was further reinforced last autumn, when the company became the only digital tipping provider to be approved by all four of the major global hotel brands.

"We're meeting a seriously understaffed market with a solution that can truly deliver more money, more often to front-line employees," says Grazzy Founder and CEO Russell Lemmer. "On the Grazzy platform, we've moved millions of dollars directly to thousands of worker wallets. And we did that while saving our enterprise customers thousands of dollars a month in recruitment and retention costs. This latest funding will support new customer acquisition, feature development, and ecosystem partner integrations that will further accelerate Grazzy's remarkable growth."

Grazzy's innovative platform has proven clear benefits to its customers, enabling businesses to improve employee satisfaction and retention through efficient, same-day payment solutions. By addressing the industry's need for modern, secure tipping options, Grazzy helps companies save on recruitment and retention costs while ensuring that front-line workers receive their earnings promptly.

"Carnation Auto Spa has experienced a remarkable boost in employee take-home pay since partnering with Grazzy," said Drew Shepard, Operating Partner at Iron Skillet Partners and CEO for Carnation Auto Spa. "We've seen a 5x increase in tips and a 4x increase in the total value of tips earned by our staff. The addition of digital tipping options has also significantly improved safety across our 20+ locations in the Dallas-Fort Worth area by minimizing the amount of cash on-site and reducing the risk of theft."

"AZ-VC is delighted to invest in Grazzy's latest funding round. They are a power player in the market, offering modern solutions compared to the outdated habit of tipping cash. Grazzy's ability to quickly and seamlessly scale across different areas and size of service makes them a valuable partner to any business looking to incorporate digital tipping solutions," says Ashok Santhanam, Venture Partner at AZ-VC.

About Grazzy
Grazzy helps hourly employees make more money, access it the same day, and save and spend in more meaningful ways. By improving financial wellness for front line workers, Grazzy reduces retention and recruiting costs for hotels, bars, restaurants, salons, car washes, and more. Grazzy also benefits back of the house operations by providing assistance to ensure tax compliance, scaling for businesses of any size, and real-time assistance with an expert care team. Our extensible payments platform enables digital tipping, instant disbursements, and inclusive banking solutions that are built to scale with hospitality and services businesses of any size. To learn more visit https://www.grazzy.com.

About AZ-VC
AZ-VC is Arizona's largest venture capital fund. Founded in 2022, AZ-VC's first fund of $115M invests in early-stage B2B software companies in Arizona and the broader Southwest. As a long-term partner to founders, AZ-VC's investing team leverages deep operating experience and network to help startups with product-market fit grow into great companies. To learn more, visit azvc.com.

Media Contact:
Rick Medeiros
510-556-8517
[email protected]

SOURCE Grazzy