Digital tipping solution Grazzy has added $4 million to its seed round led by Next Coast Ventures.
AZ-VC, InRevenue Capital, Iron Skillet Partners and Tuesday Capital also participated in the investment in the Texas-based company.
The funding will go toward recruitment as well as speeding up customer onboarding and scaling partnerships, according to a release.
Grazzy, a PhocusWire Hot 25 Startup for 2024, said it has grown its customer base 100 times in the past 18 months. The company announced a partnership with Hyatt in late 2023 and added IHG to its customer count earlier this year.
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Russell Lemmer, founder and CEO of Grazzy, said, “We’re meeting a seriously understaffed market with a solution that can truly deliver more money, more often to front-line employees. 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.”
Ashok Santhanam, venture partner at AZ-VC, added, “They are a power player in the market, offering modern solutions compared to the outdated habit of tipping cash.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.”
Grazzy announced seed funding of $4.25 million at the beginning of 2023. At the time its total seed funding was $6.8 million.
