Ganaz Raises $7M to Revolutionize Ag Worker Hiring & Payments

Transforming Agricultural Workforce Payments with Ganaz

The agricultural industry is poised for significant technological advancements. However, improvements must extend beyond crop management systems and innovative services like bee rentals to directly benefit the laborers who work the land.

Addressing Challenges Faced by Growers

Growers – the companies managing fields and distributing crops – are facing increasing pressures. Rising wages, evolving regulations, and a shrinking labor pool necessitate cost-saving measures. Reducing labor costs through wage suppression is not a viable solution, as it is both unethical and would worsen existing labor shortages.

Unique Limitations in Agricultural Technology Adoption

While numerous companies offer solutions for automating payroll and onboarding, the agricultural sector presents unique obstacles. Many existing systems are not suited to the specific needs of this workforce.

Ganaz: A Modern Workforce Stack for an Underserved Population

“The industry largely still functions as it did in the 1980s,” explains Hannah Freeman, founder and CEO of Ganaz. A substantial portion of workers’ earnings is lost to fees associated with check cashing, payday loans, currency exchange, ATM usage, and remittances.

These workers often lack consistent access to corporate or even personal email, struggle with downloading and utilizing mobile applications, and rarely employ usernames. However, they are highly familiar with communication platforms like WhatsApp and SMS, necessitating a tailored approach to technology implementation.

A Hybrid Approach to Financial Inclusion

Image Credits: Ganaz

Ganaz adopts a hybrid model, providing services for both workers and employers. This approach mirrors situations in other regions where older, more affordable technologies persist despite the availability of newer, more expensive options.

Streamlined Onboarding and Training

Onboarding and initial training are simplified through tablet-based applications that function offline, catering to individuals with varying literacy levels. This contrasts sharply with the common practice of managing paperwork from crates in truck beds – a pragmatic solution that has prevailed for years due to the workforce’s fluidity and dispersed nature.

SMS and WhatsApp-Based Payment and Balance Checks

Workers can check balances and receive payments via SMS or WhatsApp. Sensitive information is handled through a secure web application, and integrated remittance partnerships are planned to further reduce fees and simplify international money transfers.

Centralized Workforce Management for Employers

Employers benefit from a centralized interface to track worker data and documentation, similar to systems they already utilize. Ganaz also acts as a communication channel, sending text alerts and inquiries.

Growth and Impact

Image Credits: Ganaz

Currently, Ganaz serves 75 employers, including a supplier group for Costco, and supports approximately 175,000 workers. The company has experienced substantial growth, with both annual recurring revenue (ARR) and user numbers tripling year-over-year.

A Public Benefit Corporation

Ganaz is designated as a public benefit corporation, prioritizing social impact alongside financial returns. Freeman acknowledges the inherent tension between profitability and serving a vulnerable population.

“This is a constant consideration,” admits Freeman. “We are committed to aligning our operations with our mission, ensuring that our hiring practices and board composition reflect empathy and respect for the trust placed in us by our users.”

Strategic Investment and Ethical Considerations

The company’s decision to partner with Trilogy as the lead investor in this funding round was influenced by the firm’s experience with Remit.ly. Ganaz is dedicated to avoiding practices that exploit its user base.

For example, while increasing ATM fees could boost profits, it would directly harm the workers they aim to assist. Instead, the upcoming payroll Mastercard will allow workers to bypass check-cashing fees, with Ganaz earning a standard transaction fee.

Future Plans: Remittances and Expanded Accessibility

Following the launch of the Mastercard, Ganaz plans to automate remittances, enabling users to send money home with minimized fees. Additional options will be accessible via text message, allowing users to direct funds to various destinations.

Focus on the U.S. and Mexico

Ganaz primarily targets the U.S. and Mexico, given the binational nature of the agricultural workforce. However, the company has plans for future expansion.

“Our immediate priority is to establish ourselves as the leading solution in our current market,” states Freeman. “There isn’t a dominant player yet, and we aim to fill that void.”

Investment and Expansion

The $7 million funding round also included participation from Bessemer Venture Partners, Founders’ Co-op, Taylor Ventures, AgFunder, and Techstars. Ganaz will utilize these funds to accelerate expansion and execute its product roadmap.

A Commitment to Inclusive Financial Tools

“We recognize both the immense opportunity to digitize billions of dollars in agricultural payroll and our responsibility to develop inclusive, low-cost tools that empower workers to build wealth,” concludes Freeman.