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line of work across Africa face challenges manage payroll , especially in a landscape with unlike regularization , removed employee , and intercrossed workplaces . About 80 % of belittled and medium - sized businesses still habituate Excel and Google Sheets , as they ca n’t open or maintain complex paysheet system .
Here ’s why : On - website third - party solution offer limited features , while software package design for heavy ship’s company can be expensive and difficult to use . orbicular companies like Rippling and Gusto have made paysheet prosperous for outside businesses , but they struggle to work well in Africa .
That ’s where local - base solutions such as YC - backedWorkpaycome in and thrive .
Workpay provides cloud - base HR , paysheet , and benefits solutions for businesses with employee across Africa , serving two main client case . First , for local businesses with 20 - 100 employees operating within a exclusive jurisdiction , like a manufacturer in Nigeria or a grocery shop class in Kenya , Workpay provides HR and paysheet solutions to deal their workforce . Then , for businesses with 100 to 1,000 thwartwise - border employees , such as a company in Uganda charter in South Africa , Workpay also helps ensure employee conformation across dissimilar markets .
On a call with TechCrunch , Centennial State - founder and CEOPaul Kimanisays that small- to average - sized business prefer more comprehensive , full - passel solutions instead of juggle multiple systems , both for simplicity and toll : Using freestanding solutions for the same section think they drop more , as they have to pay for each piece of software severally .
Workpay has adjust consequently over the years . Initially , the 5 - year - old startup focused on payroll but has since expanded its offering , responding to client feedback as it scaled .
feature such as time and attending tracking are used mainly by business concern in manufacturing , where monitoring employee 60 minutes is substantive . Conversely , distant work businesses are less interested in dog physical presence — they desire to measure employee performance , which Workpay ’s operation direction characteristic address .
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“ The shift in customer need has pushed us to expand our product from being a solid payroll department solution to extend a more full - push-down store hour service . We ’ve also discover an opportunity to layer financial services on top of our HR offering , ” tell Kimani , who founded Workpay with COOJackson Kungu . “ Since companies already use us to pay their employee , we can now cater added armed service like medical and fomite insurance and even partner with providers for loaning , saving , and investment option . This direction , we offer a more comprehensive solution that meets the broader motivation of our customer and their employees . ”
Now the startup has raised $ 5 million in Series A funding led by Pan - African venture capital firm Norrsken22 with new involution from Visa and Plug n Play as well as a bunch of re - ups from current investor .
Visa ’s engagement in this funding round is significant . Last November , the spheric payment giantlaunched its fintech gun , selecting 23 startup for its maiden cohort while providing mentorship , grooming , and fund through its better half .
So far , only Workpay has publicly secured funding from Visa upon completing the programme . “ After the program , I think they invested depending on how they see a startup from a strategic and emergence linear perspective , ” Kimani revealed .
The surge in demand for payroll and HR result across Africa fare as spherical company extendtheir reach into emerging markets . This calendar month , New York - base fintech Payoneerbought Skuad , a Singapore - free-base ball-shaped HR and payroll inauguration , for $ 61 million . originally this year , in March , Deelacquired South Africa - based PaySpacefor slightly over $ 100 million .
Workpay and other local platforms , includingSeamlessHR , PaidHRandBento , will have to deal with the competition such entrance bring . However , Kimani views the hike in global rivalry as an affirmation of the market ’s potential .
“ We ’re not overly concerned about competitor from globular players . There is still significant workplace to be done across Africa , both by external companies and ourselves . build a comprehensive payroll resolution for the entire continent is challenging — each country has its regulations and requirements , ” the chief executive officer said . “ Payroll in Ivory Coast disagree from South Africa . It will take fourth dimension for ball-shaped companies to adapt their products to the divers African market . Therefore , in the short to medium term , we believe that contention from these ball-shaped players wo n’t be a major concern for us or others in our quad . ”
In the meantime , Workpay is scaling as tight as it can , and title to have added nigh 500 businesses to its platform in the past 16 months , and now answer more than 1,000 customers across 20 African state . This growth came even as the company delay its expanding upon into Francophone Africa , which would have duplicate its reach from 20 countries to 40 . Similarly , the company claim its revenue grew 1.5x in the first six months of 2024 and is on course to double up by the final stage of the year .
Kimani says Workpay will expend the new support to elaborate its fiscal service offering ( exploring new ware to enhance how employers and employee interact with salaries ) , bring forward its performance management tools with AI to improve how businesses manage their teams , and stay on to rise its workforce .
The Norrsken - led roundfollows a $ 2.7 million pre - Series Around last twelvemonth ( in which the Norrsken Foundation participated ) and a $ 2.1 million seed rhythm in 2020 . Other participant in this circle include existing investor Y Combinator , Saviu Ventures , Axian , Verod - Kepple Africa Ventures , and Acadian Ventures . Workpay has receive most $ 10 million in financial support since its launch in 2019 .
