Kenyan HR and Payroll startup Workpay, has successfully raised $5 million in a series A funding round led by pan-African venture capital firm Norrsken22, with new participation from global payments giant Visa.
The round also saw participation from a bunch of current investors which includes; Y Combinator, Saviu Ventures, Axian, Plug n Play, Verod-Kepple Africa Ventures, and Acadian Ventures.
This investment marks a significant milestone for Workpay, as it aims to expand its operations and enhance its platform, which provides businesses across Africa with solutions for managing payroll, HR, and employee benefits.
Tekedia Mini-MBA edition 15 (Sept 9 – Dec 7, 2024) has started registrations; register today for early bird discounts.
Tekedia AI in Business Masterclass opens registrations here.
Join Tekedia Capital Syndicate and invest in Africa’s finest startups here.
The company’s CEO Paul Kimani said the new funding will be used to expand its financial services offering (exploring new products to enhance how employers and employees interact with salaries), advance its performance management tools with AI to improve how businesses manage their teams and continue to grow its workforce.
In his words,
“The shift in customer needs has pushed us to expand our product from being a solid payroll solution to offering a more full-stack HR service. We’ve also noticed an opportunity to layer financial services on top of our HR offerings. Since companies already use us to pay their employees, we can now provide added services like medical and vehicle insurance and even partner with providers for lending, savings, and investment options. This way, we offer a more comprehensive solution that meets the broader needs of our customers and their employees.”
Notably, Kimani, who co-founded Workpay with Jackson Kungu (COO), sees a big opportunity for market leadership in Africa, having built the tech and non-tech infrastructure to enable it to scale.
“On the tech side, we have integrated with nearly everyone who is processing payments to allow us to send money to as many countries in Africa as possible. Non-tech means we have established a presence in these countries, and have partners that allow us to be compliant, which is very important,” he said.
Workday, an HR and payroll startup founded by Paul Kimani in 2019, has been experiencing significant growth and expansion since its inception. The company offers cloud-based tools for payroll, HR management, compliance, and employee benefits, allowing businesses to streamline these processes across Africa. Since 2021, Workpay has been doubling its revenue every year, as well as the number of its customers, which has seen the startup help over 700 companies and processed more than $200 million in payroll annually.
The recent funding round follows a $2.7 million pre-Series A round last year, which the company said will be used to roll out operations in 40 countries. Workpay’s rapid growth is supported by investments from prominent backers, including Y Combinator and several venture capital firms.
The startup expansion strategy highlights the increasing demand for HR tech solutions across Africa, especially as remote work and cross-border employment become more common. With its ambitious plans and strong financial backing, Workpay is well-positioned to continue leading the HR tech space in Africa.