Startup Lagos

25-Mar-2025

Acquisition

Jem HR Secures $3M in Pre-Series A Funding to Propel Growth and Product Development 1 month ago

Jem HR, the leading WhatsApp-based HR and employee benefits platform, has successfully closed a R60 million (approximately USD 3 million) Pre-Series A funding round. This significant milestone includes equity funding led by Old Mutual subsidiary Next176, along with a R30 million private debt facility.

Jem HR's innovative platform is designed to transform the lives of frontline employees while simplifying workforce management for employers. Currently, it serves over 150,000 employees across various industries, including security, mining, retail, manufacturing, and logistics.

The company has previously raised over R50 million (USD 3.4 million) from notable backers, including E4E, LoftyInc Capital, Creator Ventures, Musha Ventures, Launch Africa, Harambeans Prosperity Fund, and several high-profile individual investors with expertise in HR, fintech, and technology.

"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," said Simon Ellis, co-founder and CEO of Jem HR. "We're seeing strong demand for our platform, driven by the need to address the challenges faced by deskless workers, including low wages, unreliable transport, and safety concerns."

The new funding will facilitate Jem HR's expansion beyond Southern Africa, enable team growth, and enhance its all-in-one platform to tackle HR, communication, and employee benefit challenges at scale. The R30 million debt facility, which scales with usage, will empower Jem to launch new products aimed at improving the lives of deskless employees. These products will include a savings tool, low-cost insurance, credit score support, a financial wellness helpline, and value-added services such as airtime and data bundles.

"Our platform delivers industry-leading registration rates—over 80% across our clients, with some exceeding 95%," added Caroline van der Merwe, co-founder and Chief Product Officer. "These metrics prove our ability to connect and engage effectively with the workforce. Deskless workers have long been underserved, and we're addressing this with tailored solutions."

Tramayne Monaghan, Chief Venture Officer at Next176, commented, "We invest in businesses that deliver sustainable, disruptive growth, and Jem is a prime example. Simon, Caroline, and the entire Jem team have built a platform that is not only transformative for businesses but also deeply impactful for employees. We are excited to support their bold vision as they scale their innovative solutions across Africa and beyond."

Jem's Deskless Pulse research reveals that most South African deskless workers enjoy their jobs despite facing challenges such as low wages and transport issues. These findings have guided Jem's focus on providing tools like earned wage access and financial education to enhance worker wellbeing and resilience.

"This funding round enables us to expand our mission-driven team and continue developing solutions that genuinely make a difference," said van der Merwe. "It's our people—a world-class team of passionate individuals—who make Jem what it is. Together, we're building a platform that solves HR challenges, improves communication, and creates financial resilience for millions of workers globally."

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