Workpay, a Kenyan HR payroll start-up, has raised $2.7 million in pre-Series A funding from a range of investors, including Launch Africa and Proparco, among others. The company, which offers a full-stack HR payroll solution, plans to expand its services across 40 African countries, nearly doubling its current reach. Workpay will also release an API to enable accounting firms to be payroll providers. The start-up aims to develop its marketplace by offering financial services to its clients, including medical and asset insurance and earned-wage access. Workday has reported a doubling of revenue every year since 2021, with 700 customers and $200 million in total payroll value.
Workpay's expansion plan is being driven by the growing demand for HR payroll tech solutions in emerging markets as more companies in Africa and other regions go online to streamline their operations. The start-up aims to capitalize on this market opportunity and cement its position as a market leader in Africa.
According to Workpay's co-founder and CEO, Paul Kimani, the company has built the necessary tech and non-tech infrastructure to enable it to scale across the continent. The start-up has integrated with various payment processors to allow it to send money to as many countries in Africa as possible. Additionally, the company has established a presence in these countries and has partners that enable it to comply with local regulations.
The launch of Workpay's payroll engine will enable the start-up to serve customers in additional markets and stay ahead of their evolving needs. The API that the company plans to release will allow accounting firms to become payroll providers, further expanding its reach and impact.
Workpay's full-stack HR payroll solution offers tools that enable clients to pay salaries in local currencies across Africa, file taxes, process employee benefits, track and manage employees' time and attendance, and take leave days. The employee-side app also enables workers to receive and view their pay slips, make expense requests, and apply for leave days.
With its latest funding, Workpay is also expanding its services to include financial products such as investment accounts, medical and asset insurance, and earned-wage access for employees attending to emergencies or bills. The company plans to build a marketplace and bring in other players to serve employers and employees on its platform.
The Kenyan start-up's success is an indication of the growing demand for HR payroll tech solutions across the world, which is expected to record a compound annual growth rate (CAGR) of 9.2% and reach a $14.31 billion valuation by the close of this decade.
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