Automated tip pooling and tronc platform Grateful has raised £1.5m in seed funding from Calculus Capital.
The investment will be used to accelerate fintech and money management tools for Grateful’s users, enhance AI product development, further bolster compliance functionality and expand into new markets.
Founded in 2022 by Mason Potter, Jarrod Potter and Damian Guy, the trio started Grateful after visiting the US and seeing how well-managed tipping could boost team motivation and performance.
After initial testing with pilot clients, the team set out to solve the growing problems that operators face including admin management, operating within complex Excel sheets for tip pooling, and rising National Insurance costs for employer-received tips.
Grateful aims to bring transparency, trust and ownership back to the frontline workers, using tech to streamline operational efficiencies for operators in traditionally time-poor service industries.
“Frontline workers are the backbone of the service economy, yet they remain under-served by outdated systems that make tipping opaque, distribution slow and compliance a headache for employers,” says Mason Potter, cofounder and CEO at Grateful.
“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. 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.”
Over 50,000 people are on the platform so far, with Grateful integrating technology partners including Toast, EposNow, Deputy and PayCaptain.
“We’re delighted to support Grateful and its exceptional management team with this £1.5m investment as they transform the way the hospitality industry handles tipping and tronc management,” says Alexander Crawford, co-head of investments at Calculus Capital.
“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.”
