Cadana, a global payroll technology company specialising in emerging markets, has announced it raised $7.4m in funding.
The round was led by Costanoa Ventures, with participation from Better Tomorrow Ventures and 500 Startups.
The firm is renowned for its innovative payroll APIs and white-label solutions, which are currently enhancing payroll operations across more than 30 countries, including key emerging markets like Nigeria, Ghana, Brazil, Pakistan, UAE, and Nepal. With the fresh capital, Cadana plans to expand its team, accelerate its product development, and broaden its market reach.
In the $1.3trn global freelancer economy, Cadana stands out by tailoring its solutions to the unique challenges of emerging markets. Traditional payroll systems often overlook the complex legal and financial landscapes of these regions, resulting in delayed payments and significant remittance fees. Cadana’s technology aims to mitigate these issues, ensuring timely and less costly wage delivery to workers.
Albert Owusu-Asare, CEO and co-founder of Cadana, emphasized the company’s commitment to the worker experience. “Both my co-founder and I grew up in emerging markets, so we understand the unique challenges for workers in these regions and the difficulties receiving timely payments.
“Workers in these regions support multiple family members and delays in payments and high remittance fees are unnecessary setbacks. Most solutions focus on streamlining the experience for the payroll administrator with little emphasis on the worker experience. We’ve built payroll solutions that facilitate a better experience for both.”
Cadana’s approach is a shift from traditional methods where global hiring platforms depend on outdated third-party processes to manage employment law intricacies, often increasing operational inefficiencies and legal risks. Cadana simplifies this with its advanced APIs and white-label products, allowing seamless integration and management of payroll services within existing systems while ensuring compliance with local regulations.
Amy Cheetham, partner at Costanoa Ventures, praised Cadana’s focused innovation. “While the U.S. has seen a surge in tech platforms aiming to streamline payroll and benefits, the vast majority fall far short of addressing the unique challenges faced by employees and employers in emerging markets.
“Albert and Ameer have built exactly that, a purpose-built suite of white label products and APIs for emerging markets to power the next generation pay experience for millions of workers. This is why we’re so excited about what Cadana can do for the global payroll industry.”
Over the past 18 months, Cadana has processed over $150m in transactions across 32 countries, saving workers upwards of $2.5m in fees. The platform offers a range of sophisticated products, from no-code white-label solutions to low-code user interfaces and comprehensive APIs that handle everything from contract management to direct payments, boasting real-time transaction capabilities with minimal fees.
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