Grace Ashiru
Workpay, a cloud-based HR, payroll, and benefits platform designed for organizations with employees across Africa, has announced securing $5 million in a Series A funding round. This round was led by Norrsken22 and saw participation from notable investors such as Visa, Y Combinator, Saviu Ventures, Axian, Plug n Play, Verod-Kepple Africa Ventures, and Acadian Ventures—a firm that specializes in investing in the next generation of work technologies. This latest round of funding follows Workpay’s successful pre-Series A round of $2.7 million raised in early 2023.
Businesses across Africa are navigating a complex employment landscape, characterized by diverse regulations, widely dispersed employees, and increasingly popular hybrid work environments. Managing payroll remains a time-consuming task for Small and Medium Businesses (SMBs), with around 80% still relying on manual processes using Excel and Google Sheets. Such methods are prone to errors, often resulting in financial losses, weak compliance, and potential penalties. Many SMBs lack the necessary resources to adopt or maintain complex payroll systems.
On-premises third-party payroll solutions often provide limited functionality, while enterprise-focused software can be both expensive and difficult to implement. Although SaaS solutions have successfully streamlined payroll for Western businesses, they struggle to meet the needs of African businesses due to the challenges of localization across 54 different countries and the price sensitivity prevalent on the continent.
Co-founded by Paul Kimani and Jackson Kibigo, Workpay is a robust cloud-based payroll and HR SaaS platform designed to manage the complete lifecycle of employees and contractors, from onboarding to offboarding.
The platform offers a wide range of features, including payroll processing, time tracking, leave management, expense tracking, performance management, employee benefits administration, and Employer of Record (EOR) services. With a strong foundation, Workpay is already serving over 1,000 businesses across more than 20 countries on the African continent and aims to lead the future of employee financial services and benefits.
As Africa is expected to have the largest working-age population by 2050, the increasing trend of remote work and talent shortages in other regions is driving a surge in demand for service outsourcing to Africa. This will, in turn, lead to a greater need for African talent. Workpay is strategically positioned to assist companies both within and outside the continent to pay their employees in compliance with local regulations while offering essential financial services to their workforce.
Paul Kimani, CEO of Workpay, states, “Our objective is to become the preferred solution for employers and employees in managing HR, payroll, and work-related benefits. Our comprehensive knowledge of regulations across the African continent enables businesses operating in multiple countries to handle payroll and taxes through a single, integrated platform. This funding round will be crucial in helping Workpay achieve profitability, marking a significant milestone for our company.”
Paul Kimani, CEO of Workpay, shares, “Our aim is to become the preferred solution for employers and employees in handling HR, payroll, and work-related benefits. Our extensive knowledge of regulations across the African continent enables businesses operating in multiple countries to manage payroll and tax through a single integrated platform. This funding will propel Workpay toward profitability, a significant achievement for our company.”
Ngetha Waithaka, General Partner at Norrsken22, remarks, “Investing in Workpay presents an exciting opportunity to transform how Africa’s SMEs handle employee management. Africa has one of the largest working-age populations globally, yet this demographic is significantly underserved by current HR and payroll tools. With the integration of financial services, Workpay’s growth potential is enormous.”
Thomas Otter from Acadian Ventures expresses, “We are thrilled to increase our investment in Workpay. The company has developed the most comprehensive and modern HR and payroll platform and is well-positioned to become the leading HR platform across Africa over the next decade.”
Ryosuke Yamawaki, Partner at Verod-Kepple Africa Ventures, adds, “We have seen the leadership team’s outstanding business skills transform a product initially focused on a single industry into a unique platform addressing all HR needs for African businesses. We are excited to join this funding round once again and participate in the journey to revolutionize human resource management in Africa.”
Workpay plans to utilize the funds raised to support its expansion across the continent and to enhance its financial services offerings.
