Mexico is nearing full employment, creating a tight labor market where attracting and retaining talent requires more than just competitive salaries. Employers are now focusing on employee well-being to stay ahead of the competition.
Financial Stress: The Main Problem to Solve in Mexico
"Financial stress is the main problem we’re trying to solve in Mexico," said Nima Pourshasb, CEO of Minu, a startup that helps Mexican employees access more than 50 benefits, including telehealth and earned wage access. With 2,000 employers as clients, Minu’s platform has reached 1 million users.
Minu’s Journey to Addressing Financial Stress
Founded in 2019 by Pourshasb, Rafael Niell, and Paolo Rizzi, Minu started by tackling financial wellness through a B2B2C model. This approach allowed the company to tap into the trust employees have in their employers. By offering benefits that cater to employees’ financial needs, companies can improve employee retention and productivity.
Why a B2B2C Model?
According to Pourshasb, there are two main reasons why Minu chose a B2B2C model:
- People trust their employers.
- There’s a win-win alignment between the company’s interests and employee well-being.
By addressing financial stress through a holistic approach, companies can reduce turnover rates, improve productivity, and maintain compliance with laws like Mexico’s NOM-035, which mandates employee identification and prevention of psychosocial risks in the workplace.
Compliance and Employee Well-being
The enforcement of NOM-035 has led to a surge in demand for Minu’s services. The company is expanding its presence across Mexico, aiming to have 150 employees by the end of the year. This growth will enable Minu to meet the increasing demand for its platform.
Growing Demand and Expanding Services
Minu’s Series B funding will focus on developing new features and offerings, particularly around financial and physical health. The company is also adding HR tools like surveys, which were requested by customers. Additionally, Minu has integrated its earned wage access offering with Citibanamex’s retail app.
Competitors and Valuation
Minu faces competition in the earned wage access segment, but it also offers a wide range of benefits that set it apart from competitors like Cobee. The company declined to disclose its valuation after raising $30 million in Series B funding led by QED. However, QED mentioned that this round represented a significant increase from Minu’s Series A valuation.
Financial Milestones
Minu has raised $47 million in equity to date, including a 2023 bridge round of $257M that helped the company reach its current growth milestones.
The Future of Employee Well-being
As Mexico’s labor market continues to tighten, companies are recognizing the importance of prioritizing employee well-being. By addressing financial stress and offering comprehensive benefits, employers can attract and retain top talent while improving productivity and compliance.
By providing a platform that addresses financial stress, Minu is leading the way in promoting employee well-being in Mexico. Its success serves as an example for other companies looking to prioritize their employees’ needs in a competitive labor market.
