Jem HR, a South African technology startup providing human resources and employee benefits services via WhatsApp, has raised ZAR60 million ($3.3 million) in a pre-Series A funding round. The capital injection, comprising equity and debt, will fuel the company’s expansion and further development of its platform, which targets the often-underserved market of frontline and deskless workers.
Founded in 2019 as SmartWage, the company initially focused on offering employees instant access to earned wages. However, a 2022 rebrand to Jem HR signalled a broader ambition to digitise a wider range of HR processes for enterprises. The platform now enables companies to communicate with employees who may not have email access, distribute payslips, manage leave requests, and offer access to financial wellness products — all through the ubiquitous WhatsApp messaging service.
The pre-Series A round saw equity funding led by Next176, a venture capital firm backed by South African financial services giant Old Mutual. The round also includes a ZAR30 million private debt facility. This blended funding approach will allow Jem HR to accelerate its growth trajectory and enhance its product offerings.
Simon Ellis, co-founder and CEO of Jem HR, highlighted the significance of the funding, stating: “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.”
He pointed to the strong demand for their platform, driven by the specific challenges faced by deskless workers, including lower wages, transportation issues, and safety concerns. “The new funding will allow us to expand beyond Southern Africa, grow our team, and enhance our all-in-one platform to tackle HR, communication, and employee benefit challenges at scale,” Ellis added.
The ZAR30 million debt facility is designed to scale with the platform’s usage, enabling Jem HR to introduce new products aimed at improving the financial well-being of deskless employees. These include savings tools, low-cost insurance options, credit score support, a financial wellness helpline, and value-added services such as airtime and data bundles.
Tramayne Monaghan, chief venture officer at Next176, expressed enthusiasm for Jem HR’s potential. “We invest in businesses that deliver sustainable, disruptive growth, and Jem is a prime example,” he said. “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.”
This latest funding round follows a $2 million oversubscribed seed funding round in 2022, which attracted participation from notable investors including Idris Bello of LoftyInc Capital and Creator Collective Capital. Prior to that, in 2020, the startup secured a R6 million investment to develop its initial earned wage access solution.
Jem HR’s focus on leveraging widely accessible technology like WhatsApp to address the specific needs of deskless workers positions it within a growing market for inclusive HR technology solutions in Africa. By simplifying HR processes and providing access to crucial financial services, the startup aims to empower both employers and their frontline employees, contributing to improved productivity and financial resilience. The backing from a major player like Old Mutual through Next176 underscores the increasing recognition of the potential within this often-overlooked segment of the workforce.