Workpay, a Nairobi-based cloud-based HR, payroll, and benefits platform, has raised $5 million in a Series A funding round, led by Norrsken22, a tech growth equity fund. The round also saw participation from high-profile investors including Visa, Y Combinator, Saviu Ventures, Axian, Plug and Play, Verod-Kepple Africa Ventures, and Acadian Ventures. This latest funding follows Workpay's successful pre-Series A round of $2.7 million earlier this year. The company plans to use the new capital to expand its operations across Africa and enhance its financial services offerings. African businesses face unique challenges in managing payroll and HR functions, particularly small and medium-sized enterprises (SMEs) that often rely on manual processes like Excel and Google Sheets. Workpay aims to address these pain points with a comprehensive software-as-a-service (SaaS) platform that streamlines payroll processing, time tracking, leave management, and employee benefits administration, among other services. "With this funding, we are poised to become the go-to solution for employers and employees across Africa, offering an integrated platform that simplifies payroll and tax management for businesses operating in multiple countries," said Paul Kimani, CEO and co-founder of Workpay. "Our goal is to reach profitability and continue our journey to become the market leader in HR and payroll solutions across the continent." Norrsken22's General Partner, Ngetha Waithaka, emphasized the strategic importance of investing in Workpay, highlighting the platform's potential to revolutionize employee management for Africa’s SMEs. "Africa's large and growing working-age population is underserved by existing HR and payroll tools. Workpay’s innovative approach, coupled with integrated financial services, positions it for significant growth," Waithaka said. Workpay's expansion comes as Africa is projected to have the largest working-age population by 2050, and with the rise of remote work, demand for services outsourcing and African talent is on the rise. The company's platform, which already supports over 1,000 businesses in more than 20 countries, is well-positioned to capitalize on these trends. Acadian Ventures, an early-stage venture firm that focuses on the future of work, also participated in the round. Co-founder Thomas Otter expressed confidence in Workpay’s trajectory, stating, "Workpay has developed the most comprehensive, modern HR and payroll platform in Africa, and we believe it will become the market leader in the next decade." Verod-Kepple Africa Ventures, another key investor, is focused on bridging the funding gap for African companies at the Series A and B stages. Partner Ryosuke Yamawaki praised Workpay’s leadership and the platform’s ability to meet the diverse HR needs of African businesses, saying, "We are excited to support Workpay in its mission to revolutionize HR management across the continent." As Workpay continues to grow, the company is set to play a pivotal role in shaping the future of work in Africa, providing crucial HR and payroll solutions to businesses navigating a rapidly evolving employment landscape.
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