Digital payments startup Grazzy closes $4m to fuel growth in the hospitality industry

Grazzy, the digital payments platform for hospitality and service-focused businesses, announced the completion of a $4 milllion seed round with participation from AZ-VC, In Revenue Capital, Iron Skillet Partners, Tuesday Capital, and Next Coast Ventures. This 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. Early last year, Grazzy raised $4.25 million to power hospitality's future of digital tips.

Justin Gray, Co-founder and Managing Partner, In Revenue Capital: "We were drawn to Grazzy for a wide variety of reasons, including the company's impressive market traction and its exceptional product-market fit. Most of all, we believe in the Grazzy team, a cohort of strong, proven operators with an incredible track record together. Combined with a hyper-value product, we believe the Grazzy and In Revenue teams are natural allies joining together to take this platform further, faster."

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.

Russell Lemmer, Founder and CEO, Grazzy: "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."

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.

Drew Shepard, Operating Partner, Iron Skillet Partners and CEO, Carnation Auto Spa: "Carnation Auto Spa has experienced a remarkable boost in employee take-home pay since partnering with Grazzy. 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."

Ashok Santhanam, Venture Partner, AZ-VC: "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."

www.grazzy.com

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