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South African startup Jem HR, a WhatsApp-based platform specializing in human resources and employee benefits, has successfully secured ZAR60 million (US$3.3 million) in pre-Series A funding.
The funding round featured equity investments led by Next176, a venture capital firm supported by financial services giant Old Mutual, and a ZAR30 million (US$1.65 million) private debt facility. This influx of capital is set to propel Jem HR’s growth and enhance its product development efforts.
Founded in 2019 as SmartWage, Jem HR initially aimed to provide employees with immediate access to earned wages. After rebranding in 2022, the company expanded its mission to digitize various HR processes for businesses. The platform now allows companies to communicate with employees without email access, distribute payslips, manage leave requests, and offer financial wellness products—all via the widely-used WhatsApp messaging service.
Simon Ellis, co-founder and CEO of Jem HR, stressed the importance of the funding:
“This funding is a pivotal step in enabling us to achieve our dual mission: to make managing and connecting frontline employees effortless while providing them with money-saving financial benefits.”
Ellis pointed to the significant demand for their platform, driven by the challenges faced by deskless workers, such as low wages, transportation issues, and safety concerns. He noted that the new funding will allow Jem HR to extend its reach beyond Southern Africa, expand their team, and improve their all-in-one platform to address HR, communication, and employee benefit challenges on a larger scale.
The ZAR30 million debt facility is designed to scale alongside the platform’s usage, empowering Jem HR to introduce new products aimed at enhancing the financial well-being of deskless employees. These offerings will include savings tools, low-cost insurance, credit score support, a financial wellness helpline, and additional services like airtime and data bundles.
Tramayne Monaghan, chief venture officer at Next176, expressed excitement about the investment:
“We invest in businesses that foster sustainable, disruptive growth, and Jem is a prime example. Simon, Caroline, and the entire Jem team have developed a platform that is not only transformative for businesses but also significantly beneficial for employees. We are thrilled to support their ambitious vision as they scale their innovative solutions across Africa and beyond.”
This investment marks a significant milestone for Jem HR as it continues to cater to the needs of frontline and deskless workers, a segment that is often underserved in the HR tech sector. By capitalizing on the widespread use of WhatsApp, Jem HR seeks to bridge communication gaps and deliver essential services to employees who may not have access to conventional digital communication platforms.
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