Kenyan HR payroll provider Workpay has successfully raised Ksh.645 million ($5 million) in its Series A funding round, signaling a significant milestone for the start-up. Founded in 2019 by Paul Kimani (CEO) and Jackson Kungu (COO), Workpay has rapidly established itself as a key player in the HR and payroll technology landscape in Africa. The recent funding will fuel the company’s ambitious plans to expand its offerings and enhance its platform.
Workpay’s cloud-based platform simplifies payroll management for employers by handling salary processing, benefits, tax filing, and employee attendance and leave tracking. This functionality has already attracted a robust client base, with over 1,000 businesses across 20 African countries utilizing its services. Notably, the company has onboarded nearly 500 new businesses in the past 16 months alone.
The Series A round was spearheaded by pan-African venture capital firm Norrsken22 and global payments leader Visa. Existing investors such as Y Combinator, Saviu Ventures, Axian, Plug n Play, Verod-Kepple Africa Ventures, and Acadian Ventures also participated in the round. This diverse group of investors highlights the significant interest and confidence in Workpay’s growth potential and its role in transforming HR management in Africa.
Paul Kimani, co-founder and CEO of Workpay, emphasized the evolving needs of their customers in a statement to TechCrunch. “The shift in customer needs has pushed us to expand our product from being a solid payroll solution to offering a more full-stack HR service. We have also noticed an opportunity to layer financial services on top of our HR offerings,” Kimani said. This strategic shift reflects Workpay’s commitment to staying ahead of market trends and delivering comprehensive solutions that address the broader needs of businesses.
Workpay’s platform provides employees with a dedicated app where they can access their pay slips, request expenses, and apply for leave days. This user-friendly interface not only streamlines administrative processes for companies but also enhances the employee experience by giving them direct access to their payroll information and other HR-related services.
The Series A funding will be directed towards several key areas. Firstly, Workpay plans to expand its financial services offerings, integrating additional tools and features that complement its existing HR services. Secondly, the start-up aims to incorporate artificial intelligence into its performance management tools, enhancing the platform’s capabilities and providing more advanced analytics and insights for businesses. Lastly, Workpay intends to grow its workforce to support its expanding operations and continue delivering high-quality service to its clients.
The recent funding round follows a successful pre-Series A round in early 2023, where Workpay secured $2.7 million from investors including Launch Africa Ventures, Saviu Ventures, Acadian Ventures, PROPARCO, Fondation Botnar, Kara Ventures, and Axian Group Norrsken. The start-up also raised $2.1 million in seed funding during its time in Y Combinator’s 2020 class, highlighting its strong track record of attracting investment and scaling its operations.
As Workpay moves forward, its focus on expanding its product suite and leveraging technology to enhance HR services positions it well for continued success in the African market. The integration of AI and the expansion into financial services are poised to set new benchmarks in the HR technology space, reinforcing Workpay’s role as a leader in innovation and service delivery.
With a growing customer base and a clear strategic vision, Workpay is set to make significant strides in the HR and payroll industry, driving efficiencies and improving employee experiences across the continent. The latest funding injection not only validates Workpay’s business model but also provides the resources needed to propel its next phase of growth and innovation.
