Kadmos payment platform raises $29 million
Berlin-based fintech startup Kadmos has secured 29 million euros ($29 million) to develop its payment processing platform for migrant workers, according to a Monday (July 11) press release.
The Series A funding round was led by Blossom Capital, with participation from existing investors Addition and Atlantic Labs.
Founded in 2021 by Justus Schmueser and Sasha Makarovych, Kadmos streamlines the payment of wages for migrant workers. It consists of an app for workers with a multi-currency wallet and an API for employers, many of them in the shipping industry.
“The financial restrictions imposed on migrant workers are truly shocking. Employees have to wait days or weeks for their hard-earned wages to reach their families and are then forced to pay exorbitant transaction fees or have to carry large sums of cash at their own risk,” Schmueser said. “At Kadmos, we strive to change the status quo with cutting-edge financial technology and ensure that the hard workers who power the global economy can keep more of their well-deserved wages.”
Currently, employers using Kadmos are concentrated in the shipping industry, but the startup plans to use the new capital to expand into other sectors such as construction, healthcare and hospitality. .
The money will also be used to grow the team and expand its technology and service offering.
Commenting on the news, Alex Lim, Managing Partner of Blossom Capital, said, “With outdated banking practices and multiple intermediaries charging excessive fees, it is clear that the cross-border payment process is disrupted, and Kadmos’ FinTech platform is exactly the ideal solution. technology to fix it.
Technologies that help migrant workers get paid faster and manage their money more efficiently are essential in sectors where levels of job security and wages can be low, meaning many workers live on one salary to another.
Data from PYMNTS revealed that 65% of consumers living paycheck to paycheck experienced at least one financially stressful event in the past three years, sudden disruptions to their income, such as loss of a job, being the most common.
Read more: The New Reality Check: The Paycheck to Paycheck Report: The Financial Distresser Edition
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