Harrogate and London-based Grateful – the automated tip pooling and tronc platform – has raised £1.5 million ($2m) seed funding from Calculus Capital.
Founded in 2022 by Mason Potter (CEO), Jarrod Potter (Chair), and Damian Guy (CPTO), the trio started Grateful after Mason and Jarrod’s experience in the United States, where they saw first hand how well-managed tipping could profoundly boost team motivation and performance.
After initial testing with pilot clients, the trio then set out to solve the growing problem that operators faced by drowning in admin, operating on huge, complex Excel sheets for tip pooling and rising National Insurance costs for employer received tips whilst service workers were being hit with shift latency, a lack of transparency and a growing lack of trust in tip pooling arrangements due to outdated and manual processes. They saw a great opportunity to make a difference by bringing transparency, trust and ownership back to the frontline workers, and use tech to streamline operational efficiencies for operators in traditionally time-poor service industries.
The £1.5 million investment from Calculus Capital will be used to accelerate fintech and money management tools for the end user, enhance AI product development, further bolster compliance functionality, and expand into new markets, supporting Grateful’s ambition to become the category leader in frontline worker pay and benefits. The trio have relevant experience to tackle this issue head on – Mason comes from a sales software and security background, whilst Jarrod and Damian have built and exited multiple software and MSP businesses.
Mason Potter, Co-Founder & CEO of Grateful, said: “Frontline workers are the backbone of the service economy, yet they remain under-served by outdated systems that make tipping opaque, distribution slow, and compliance a headache for employers. With the shift to a cashless society and the introduction of the Employment (Allocation of Tips) Act 2023, businesses are under increasing pressure to manage tips fairly and transparently, while workers struggle to make their earnings go further.
The service industry has long struggled with unfair and opaque tipping practices, employers often distributed tips inconsistently, or used them to subsidise wages. As cashless payments replaced cash, businesses gained control over digital tips, leading to delays and a lack of understanding of the distribution policy among staff. Many companies also mishandled ‘tronc’ systems, causing tax and compliance issues. These problems damaged employee morale and public trust, prompting new UK legislation in 2024 that requires all tips to go directly and transparently to workers, driving demand for automated, compliant solutions like Grateful.
Grateful is reinventing how businesses reward and retain frontline workers, and its platform tackles these challenges head on, combining digital tipping, modern tronc management, and worker financial tools into one solution that helps employers stay compliant while giving teams more transparency and ownership than ever before on their gratuities This approach has fuelled impressive growth of more than 400% year-on-year, as major hospitality groups turn to Grateful to meet regulatory demands and boost retention.
Over 50,000 people are on the platform currently, and Grateful are already working and integrating with other technology partners – including the likes of Toast, EposNow, Deputy, PayCaptain, and many more.
Alexander Crawford, Co-head of Investments at Calculus Capital, said: “We’re delighted to support Grateful and its exceptional management team with this £1.5 million investment as they transform the way the hospitality industry handles tipping and tronc management. Grateful’s platform brings fairness, transparency and compliance, in a cost-efficient way, to a space that has historically lacked all three. With new legislation driving change, Grateful is perfectly positioned to lead the way in ensuring every hospitality worker gets the tips they deserve, and we’re proud to be part of that journey.”
Potter added: “We’re thrilled to welcome Calculus Capital as a partner on this journey. Their backing gives us the firepower to unlock the next chapter in Grateful’s growth journey, building a platform that not only solves compliance for businesses but empowers workers all around the world by giving them more transparency than ever before on hard earned tips, and making their money go further. Our mission is simple: to make Grateful synonymous with gratitude for the gig economy and create a company that transforms how frontline workers are rewarded in the modern era.”
Grateful has an ambitious vision to modernise tipping with aims to become the most transparent, simplest, and rewarding way to give, receive, and manage tips. With its future forward tipping solution, businesses can save time and money, incentivise their teams, and show appreciation. Its tronc management and tronc solutions boost take home pay for workers, enhance staff retention, and elevate service standards, ensuring happier customers while saving businesses time and money.
Read the orginal article: https://ffnews.com/newsarticle/funding/grateful-secures-1-5m-investment-to-transform-tips-for-frontline-workers/
