MyInterview wants to help the hospitality industry recruit employees, and Grazzy wants to help retain them.
Travel Startup Funding This Week
Each week we round up travel startups that have recently received or announced funding. Please email Travel Tech Reporter Justin Dawes at [email protected] if you have funding news.
Two tech startups involved in the travel industry raised $15.3 million this week.
>>Grazzy, a finance platform that enables digital tipping and same-day pay for the hospitality industry, has raised $4.3 million in seed funding from Next Coast Ventures and Tuesday Capital.
The capital will be used to accelerate business growth with large hotel brands and operating groups, restaurant groups, and salons, the company said. It will also go toward improving integration between Grazzy software and the operations software used by clients.
Texas-based Grazzy said its platform gives instant access to same-day earnings for employees of hotels, bars, restaurants, and salons. Grazzy said it also helps with back-office efficiency through automated payments, and it claims to have the lowest processing fees in the market. The platform also enables guests to leave feedback.
Hotel Abri, a Grazzy client in San Francisco, said wages for 20 percent of housekeeping employees effectively increased by up to $2 per hour in the first 60 days of using the platform, and there was a 20 percent organic increase in service scores.
Because of today’s increasingly cashless economy, hospitality employees often have to wait to receive tips paid with credit cards. The Grazzy platform gives access to those digital tips right away, which is one of the ways the startup said its product is meant to improve employee retention and recruiting.
“Even as hourly pay rates increase, we know that cash constraints have meant meaningfully less earnings for service industry workers who depend on tips to supplement their hourly wages. We’re on a mission to fix that,” said Russell Lemmer, Grazzy founder and CEO, in a statement. “Our digital, employee-centric platform helps those folks make more money, use it the same day, and save and spend in better ways.”
>>MyInterview, a video job interview platform expanding in the hospitality industry, has raised $11 million in Series A funding. It was led by Aleph, Entrée Capital, and Jesselson Family Office, with participation from SeedIL Ventures, Digital Horizon, and Ocean Azul Partners.
Israel-based MyInterview said the hospitality sector is among the strongest set of clients right now, especially with increasingly high turnover from the youngest generation of workers. Hospitality customers include hotel brand Hyatt, Singapore-based travel agency Agoda, and amusement park company Six Flags.
The funding will go toward expanding the tech product, which the startup said uses artificial intelligence to identify the best workers and reduce hiring time by 70 percent.
MyInterview also said that Amalia Bercot has been hired as co-CEO.
|Grazzy||Seed||Next Coast Ventures and Tuesday Capital||$4.3 million|
|MyInterview||Series A||Aleph, Entrée Capital, and Jesselson Family Office||$11 million|
Skift Cheat Sheet
Seed capital is money used to start a business, often led by angel investors and friends or family.
Series A financing is typically drawn from venture capitalists. The round aims to help a startup’s founders make sure that their product is something that customers truly want to buy.
Series B financing is mainly about venture capitalist firms helping a company grow faster. These fundraising rounds can assist in recruiting skilled workers and developing cost-effective marketing.
Series C financing is ordinarily about helping a company expand, such as through acquisitions. In addition to VCs, hedge funds, investment banks, and private equity firms often participate.
Series D, E and, beyond These mainly mature businesses and the funding round may help a company prepare to go public or be acquired. A variety of types of private investors might participate.
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Photo credit: Hotel Abri in San Francisco is a client of Grazzy. Wikimedia Commons