More
    HomeEcosystem NewsLatest FundingKenyan HR-Payroll Provider Workpay Raises $8.8 Million in New Funding Round

    Kenyan HR-Payroll Provider Workpay Raises $8.8 Million in New Funding Round

    Published on

    spot_img

    Kenyan HR and payroll platform Workpay has recently raised $8.8 million in a new funding round, Launch Base Africa has learned. This substantial investment underscores the growing confidence in Workpay’s innovative solutions designed to streamline workforce management across the continent. While the specific investors remain undisclosed, the funding round signifies a major milestone for the Y Combinator-backed company, enabling it to accelerate its expansion and introduce cutting-edge HR technology to empower businesses and employees throughout Africa.

    This investment comes amidst significant growth in the HR-payroll market, with industry analysts projecting a compound annual growth rate of 9.2% and an expected market value of $14.31 billion by the end of the decade. The increasing demand for streamlined HR and payroll solutions, particularly among small and medium-sized businesses, is driving this growth.

    Workpay, which previously raised $2.7 million in a pre-Series A round in February 2023, has become a prominent player in this market. The company is focused on capitalizing on the growing demand for HR-payroll technology in emerging markets.

    In a recent interview, Workpay co-founder and CEO Paul Kimani outlined the company’s ambitious plans, including expanding into new markets with a new payroll engine and launching an API to enable accounting firms and other entities to offer payroll services to their clients.

    Kimani expressed confidence in Workpay’s potential for market leadership in Africa, emphasizing the company’s technological infrastructure and strategic partnerships. He also highlighted the importance of compliance in navigating the diverse regulatory environments across the continent.

    Founded in 2019 by Jackson Kibigo, Paul Kiman, Workpay offers a comprehensive suite of HR-payroll tools, including salary payments in local currencies across Africa, tax filing, and employee benefits processing. The platform also includes features for time and attendance tracking, leave management, and expense requests.

    One notable feature of Workpay’s platform is its flexibility in allowing employees to receive salaries in their preferred accounts, regardless of their employer’s banking affiliations. This approach enhances convenience and financial inclusivity for workers.

    In addition to its core HR and payroll offerings, Workpay has expanded into financial services, providing linkages to investment accounts, medical and asset insurance, and earned-wage access for employees facing emergencies or unexpected bills.

    Workpay’s growth has been substantial, with a significant increase in revenue and customer acquisition following the economic slowdown caused by the COVID-19 pandemic. The company reports doubling its revenue annually since 2021 and is currently serving over 1000 customers. WorkPay also processes over $200 million in total payroll value for its clients annually.

    Thomas Otter, a general partner at Acadian Ventures, one of Workpay’s previous investors, commended the company’s progress, stating, “Workpay is building a top-notch product, meeting the specific needs for HR and payroll in Sub-Saharan Africa. The addressable market in the region is growing rapidly, and HR and payroll systems provide the foundation for fair and accurate pay.”

    In 2023, after securing $2.7 million in pre-Series A funding from various investors, including Launch Africa, Saviu Ventures, and Acadian Ventures, Workpay expanded to Morocco. The company had previously secured $2.1 million in initial investment in 2020.

    Workpay’s expansion and continued growth position it as a key player in shaping the future of HR-payroll solutions in Africa and potentially beyond.

    Charles Rapulu Udoh has carved a niche at the forefront of Africa’s booming tech scene. With years of experience, Udoh has become a go-to expert for multi-million dollar deals in venture capital, private equity, and intellectual property across a vast landscape — from Delaware and New York to Singapore and South Africa. But his expertise extends beyond just the legalese. Udoh is also a corporate governance, data privacy, and tax whiz. An award-winning writer and researcher, he’s passionate about chronicling Africa’s startup story, cementing his position as a true pioneer in the field.

    Latest articles

    Mobility Startup Zeelo Exits South Africa, Hands Reins to Ride-Sharing Rival LULA

    Zeelo, a US-based company that launched its South African operations in 2019, has decided to exit the market to focus on its core markets in the US, UK, and Ireland.

    Egypt’s dopay Secures $13.5M to Expand Digital Payroll Solutions for Underbanked Workers

    dopay’s expansion plans include the development of a self-financing lending model in collaboration with partner banks, which will leverage deposited funds to create a sustainable lending portfolio

    d.light Secures $176 Million to Expand Solar Access in East Africa

    The company’s PayGo model allows customers to pay for solar products in installments using mobile money.

    New US Parole Program Offers 5-Year Visa to African Startups with $260K+ Raised

    To qualify, entrepreneur must have a significant ownership stake (at least 10%) in a U.S.-based startup that was formed within the last five years.

    More like this

    Mobility Startup Zeelo Exits South Africa, Hands Reins to Ride-Sharing Rival LULA

    Zeelo, a US-based company that launched its South African operations in 2019, has decided to exit the market to focus on its core markets in the US, UK, and Ireland.

    Egypt’s dopay Secures $13.5M to Expand Digital Payroll Solutions for Underbanked Workers

    dopay’s expansion plans include the development of a self-financing lending model in collaboration with partner banks, which will leverage deposited funds to create a sustainable lending portfolio

    d.light Secures $176 Million to Expand Solar Access in East Africa

    The company’s PayGo model allows customers to pay for solar products in installments using mobile money.