Workpay, a cloud-based platform that handles HR, payroll, and benefits for organizations across Africa, has successfully secured $5 million in a Series A funding round. This round was led by Norrsken22, with additional investments from notable entities including Visa, Y Combinator, Saviu Ventures, Axian, Plug n Play, Verod-Kepple Africa Ventures, and Acadian Ventures, a firm specializing in the next generation of work technologies. This latest investment follows Workpay’s earlier success, where they raised $2.7 million in a pre-Series A round in early 2023.
The employment landscape in Africa presents unique challenges for businesses, including complex regulations, a dispersed workforce, and the rise of hybrid workplaces. For Small and Medium Businesses (SMBs), payroll management remains a particularly daunting task.
With 80% of SMBs still relying on manual processes using Excel and Google Sheets, the risk of errors is high, leading to financial losses, compliance issues, and potential penalties. Many SMBs lack the resources to implement complex payroll systems, and while third-party solutions are available, they often fall short in capabilities or are too expensive for smaller enterprises. Although SaaS platforms have simplified payroll processes in Western markets, they often struggle to meet the specific needs of African businesses due to the continent’s diverse regulations and price sensitivity.
Workpay, co-founded by Paul Kimani and Jackson Kibigo, offers a comprehensive cloud-based HR and payroll solution designed to address these challenges. The platform supports the entire employee lifecycle, from onboarding to offboarding, with features like payroll processing, time and leave management, expense tracking, performance management, employee benefits administration, and Employer of Record (EOR) services. With over 1,000 businesses across 20+ African countries already using the platform, Workpay is well-positioned to lead the future of employee financial services and benefits on the continent.
As Africa is projected to have the largest working-age population by 2050, the demand for African talent is expected to rise, especially with the growth of remote work and talent shortages in other markets. Workpay is strategically placed to help companies both within and outside Africa manage their payroll compliantly while also offering essential financial services to employees.
Paul Kimani, Workpay’s CEO, emphasized the company’s mission: “Our aim is to become the go-to platform for employers and employees when it comes to managing HR, payroll, and work-related benefits. With our deep understanding of regulations across Africa, businesses operating in multiple countries can manage payroll and taxes seamlessly through our integrated platform. This funding will support us in reaching profitability, which is a significant milestone for our company.”
Ngetha Waithaka, General Partner at Norrsken22, highlighted the potential impact of their investment: “Investing in Workpay presents a unique opportunity to revolutionize employee management for Africa’s SMEs. Africa has one of the largest working-age populations globally, yet it is underserved by existing HR and payroll tools. With the integration of financial services, Workpay has immense growth potential.”
Thomas Otter from Acadian Ventures expressed enthusiasm for continued investment in Workpay: “We are thrilled to expand our investment in Workpay. The company has developed a comprehensive, modern HR and payroll platform and is on track to become the leading HR platform across Africa in the coming decade.”
Ryosuke Yamawaki, Partner at Verod-Kepple Africa Ventures, praised Workpay’s leadership team: “We have observed the leadership team’s exceptional ability to evolve from a single-industry focused product to a versatile platform that addresses all HR needs of African businesses. We are excited to be part of this journey to transform human resource management in Africa.”
The funds raised will support Workpay’s expansion across Africa and the enhancement of its financial services offerings