Workpay, a Kenyan HR and payroll startup, has recently secured $5m in Series A funding.
The round was led by pan-African venture capital firm Norrsken22, with notable new participation from Visa and Plug n Play, alongside re-investment from existing backers such as Y Combinator, Saviu Ventures, Axian, Verod-Kepple Africa Ventures, and Acadian Ventures, according to a report from TechCrunch.
Specializing in cloud-based HR, payroll, and benefits solutions, Workpay serves businesses with employees across Africa. The startup caters to local businesses with 20-100 employees in a single jurisdiction and larger enterprises with up to 1,000 cross-border employees, ensuring compliance across various markets.
The newly acquired funds will be used by Workpay to broaden its financial services, enhance performance management tools with AI, and continue expanding its workforce.
Co-founder and CEO Paul Kimani emphasized the shift towards offering a more comprehensive full-stack HR service, driven by customer feedback and the evolving needs of the market.
Historically, Workpay has shown robust growth, adding nearly 500 businesses to its platform over the past 16 months, now serving over 1,000 customers across 20 African countries. Despite challenges, such as delaying expansion into Francophone Africa, the company’s revenue grew by 1.5x in the first half of 2024 and is projected to double by year-end.
Kimani detailed, “We’re not overly concerned about competition from global players. There is still significant work to be done across Africa, both by external companies and ourselves. Building a comprehensive payroll solution for the entire continent is challenging—each country has its regulations and requirements.
“Payroll in Ivory Coast differs from South Africa. It will take time for global companies to adapt their products to the diverse African market. Therefore, in the short to medium term, we believe that competition from these global players won’t be a major concern for us or others in our space.”
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