By Edson Baraukwa | Africa Guardian
Nairobi-based HR, payroll, and benefits platform, Workpay, has announced the successful completion of a $5 million Series A funding round led by Norrsken22. The investment round also saw participation from Visa, Y Combinator, Saviu Ventures, Axian, Plug n Play, Verod-Kepple Africa Ventures, and Acadian Ventures, a firm specializing in next-generation work technologies. This latest funding follows a pre-Series A round in early 2023, where Workpay raised $2.7 million.
Businesses across Africa face challenges with a complex employment landscape, characterized by varied regulations, widespread remote work, and hybrid workplaces. Many Small and Medium Businesses (SMBs) still manage payroll manually using Excel and Google Sheets, a process that is error-prone and inefficient, often resulting in compliance issues and financial losses. While SaaS solutions have streamlined payroll for businesses in Western markets, their effectiveness is limited in Africa due to the continent’s diverse regulatory environment and price sensitivity.
Workpay’s Expansive Platform
Workpay provides a comprehensive cloud-based platform for payroll and HR management, handling everything from employee onboarding to offboarding. Its features include payroll processing, time tracking, leave management, expense tracking, performance management, employee benefits administration, and Employer of Record (EOR) services. The platform currently supports over 1,000 businesses across more than 20 African countries.
With Africa expected to have the world’s largest working-age population by 2050, the rise in remote work and talent shortages in other regions is increasing demand for outsourcing services on the continent. Workpay is well-positioned to facilitate compliant payroll and offer crucial financial services to employees both on and off the continent.
Funding to Drive Profitability and Expansion
Paul Kimani, CEO of Workpay, commented, “Our aim is to become the leading solution for managing HR, payroll, and work-related benefits. Our expertise in navigating the regulatory landscape across Africa enables businesses to manage payroll and taxes seamlessly through a single integrated platform. This funding will play a crucial role in helping us achieve profitability, a significant milestone for our company.”
Ngetha Waithaka, General Partner at Norrsken22, noted, “Investing in Workpay represents a transformative opportunity to redefine employee management for Africa’s SMEs. With Africa’s substantial working-age population still underserved by current HR and payroll solutions, Workpay’s integration of financial services opens up tremendous growth potential.”
Workpay plans to utilize the new funds to expand its operations across Africa and enhance its financial services offerings.
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