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Harrogate and London-centered fintech Grateful has secured £1.5 million ($2m) in initial funding from Calculus Capital to expedite the advancement of its automated tip pooling and tronc platform for frontline personnel.
Established in 2022 by Mason Potter (CEO), Jarrod Potter (Chair), and Damian Guy (CPTO), Grateful seeks to address one of the hospitality sector’s most enduring challenges: the intricate and unclear allocation of tips in a cashless environment. The startup’s software streamlines tip pooling, compliance, and payments, providing employers with clarity while assisting staff in receiving their earnings more swiftly and equitably.
The founders were motivated by their experiences in the United States, where organized tip management demonstrated a significant enhancement in morale and employee retention. In the UK, they observed operators “overwhelmed by administration” — utilizing extensive Excel spreadsheets to oversee tronc systems while grappling with escalating National Insurance expenses and new legal requirements.
Potter remarked that the service industry’s antiquated tipping mechanisms were “failing both employees and businesses.”
“Frontline personnel are the cornerstone of the service sector, yet they continue to be underserved by outdated systems that render tipping unclear, distribution sluggish, and compliance burdensome for employers,” he stated. “With the transition to a cashless society and the new Employment (Allocation of Tips) Act, equitable and transparent digital tipping has become crucial.”
The recent legislation, instituted in 2024, requires that all tips must be directed immediately and transparently to workers, fueling demand for compliant, automated solutions like Grateful.
Grateful’s technology amalgamates digital tipping, tronc management, and financial tools for workers in a single platform, diminishing manual tasks for businesses while providing staff with real-time insight into their gratuities. The platform has expanded 400% year-over-year, boasting over 50,000 users and collaborations with prominent hospitality tech providers such as Toast, EposNow, Deputy, and PayCaptain.
The £1.5 million investment will support Grateful’s next growth stage — developing AI-driven financial tools, improving compliance features, and venturing into new markets.
Alexander Crawford, Co-head of Investments at Calculus Capital, stated: “Grateful’s platform delivers fairness, transparency, and compliance in a cost-effective manner to a sector that has historically lacked all three. With new legislation prompting change, Grateful is excellently positioned to pioneer in ensuring every hospitality worker receives the tips they merit.”
Potter emphasized that Calculus’s support would facilitate the company’s international expansion: “Their backing provides us with the strength to develop a platform that not only resolves compliance for businesses but also empowers workers globally by granting them more ownership and transparency regarding their hard-earned tips.”
Grateful’s aim is to become the leading name in frontline worker remuneration and benefits, assisting employers in enhancing retention and morale while simplifying compliance. “Our purpose is clear,” Potter declared. “To make Grateful synonymous with appreciation for the gig economy — and to revolutionize how frontline workers are compensated in the contemporary age.”
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