We are excited to welcome Minu to the Working Capital Fund portfolio. The company is a strong impact fit with our focus on vulnerable workers and represents a logical continuation of our investments in the worker welfare space. Minu provides a holistic set of employee benefits addressing workers’ financial, mental, and physical health, including earned wage access, personal loans, high-yield savings accounts, voucher-cards, insurance coverage, healthcare services, and prescriptions. We believe that the “Swiss army knife” mix of employee engagement tools positions Minu to become a category leader in Mexico and beyond.  

At Working Capital Fund, we look for technology solutions that can transform worker outcomes through supply chains. Minu aligns closely with our portfolio’s interest in improving working conditions, yet is differentiated from our investments in tools that include worker voice platforms, worker empowerment and education, and worker health and safety. Minu provides employers with a library of tools that employees can customize, improving financial, health, and wellness outcomes. 

In Mexico, the combination of low wages, minimal financial education, and lack of usury laws make predatory lending a substantial risk to wage earners. Eighty percent of Mexicans live paycheck to paycheck. One-third receive loans, sometimes at interest rates up to 400% APR, to cover basic life expenses. To combat predatory lending, Minu offers earned wage access (EWA), which provides employees instant access to up to 50% of their unpaid wages. EWA acts as liquidity insurance, a financial safety net ensuring workers can afford housing, food, and other necessities. In 2022, a study by Harvard Business School found that using Minu’s EWA product was associated with a 20% reduction in employee turnover each pay cycle. 

Minu also addresses mental and physical wellness. Workers in Mexico face several obstacles to mental health care, including a lack of human resources, high costs, and long distances to providers. In 2018, the Ministry of Labor and Social Welfare in Mexico passed NOM35, legislation that requires employers to track employee psychosocial risk factors in the workplace and implement preventative measures to promote mental health. This legislation allows companies to be audited and fined for non-compliance. Minu leverages the momentum created by NOM35 to offer workers a suite of healthcare, mental health, telehealth, emergency assistance, insurance, and prescription services. Preventative health services include gym memberships, fitness and meditation classes, and more. By supporting compliance with NOM35 and similar regulations, Minu helps companies avoid potential fines and legal issues while demonstrating a commitment to employee well-being. 

Small or medium business (SMB) producers and suppliers have been historically reluctant to pay for services to address employee welfare, but Minu’s unique value proposition is resonating in the marketplace. Too many competing platforms offer just a few tools or a single standalone EWA offering. But Minu’s compelling mix and wide array of benefits on a single platform create a “stickiness” that fundamentally differentiates their product. And by demonstrating that a happier and healthier workforce can reduce turnover and increase operational efficiency Minu is contributing to their customer’s bottom line and making a strong business case for doing the right thing.