Many employees across Africa face the challenge of monthly paydays that don't align with their daily expenses. Traditionally, these individuals have resorted to obtaining salary advances from their employers or banks. In cases where these options were not available, they were forced to rely on loan sharks, who charged exorbitant interest rates.

However, a new solution has emerged in the form of earned-wage access startups. These startups have emerged across the continent over the past five years, offering employees the ability to access a portion of their earnings prior to payday.

Among these innovative companies is Zofi Cash, a Ugandan fintech startup that recently raised $1 million in a pre-seed round led by Advancly.

Established in 2021 by Paul Kirungi (CEO) and Gordon Turibamwe (CTO), Zofi Cash is part of a growing cohort of African fintech firms providing on-demand salary access to individuals in need. Through their web application, employees can request advances of up to 50% of their monthly salary. Once the employer approves the advance, the funds are disbursed directly into the employee's bank account or mobile money wallet.

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Within the past year, Zofi Cash has facilitated transactions exceeding $300,000, an impressive achievement that Kirungi attributes to the company's ability to secure funding in a challenging investment landscape.

Our strong performance metrics have played a vital role in this fundraising success. Over the course of a year, we have facilitated transactions totalling $300,000. While securing funding has been an arduous journey, our unwavering commitment to ensuring that nobody has to wait for payday to access their earnings has been our driving force,

explained Kirungi.

Despite having a waitlist of over 20,000 employees, Zofi Cash has only been able to serve approximately 3,000 individuals thus far. With the recent debt financing secured, the startup aims to expand its reach to accommodate a larger portion of this target market.

In Uganda, Zofi Cash will encounter competition from Qiribu, a startup that entered the market a year prior. However, if the company decides to venture beyond its East African roots, it will face competition from other players such as Workpay, Salad, and Earnipay.