Kenyan HR and payroll startup Workpay has secured $5 million in Series A funding, led by Norrsken22, a firm that has previously invested in NALA and Orca. Other participants in the funding round include Visa, Y Combinator, Saviu Ventures, Axian, Plug n Play, Verod-Kepple Africa Ventures, and Acadian Ventures. This new investment comes after Workpay raised $2.7 million in a pre-Series A round last year.
The newly acquired funds will be used to drive Workpay’s expansion across Africa and to further develop its financial services offerings.
Addressing a Major Challenge
Across Africa, businesses face the complex task of managing a dynamic workforce, dealing with various regulations, remote employees, and hybrid work environments. For Small and Medium-sized Businesses (SMBs), managing payroll can be particularly time-consuming, with around 80% still relying on manual processes using Excel and Google Sheets. These businesses often find it difficult to handle the intricacies of payroll systems. While third-party solutions exist, they often offer limited features, and software designed for larger companies tends to be costly and difficult to navigate.
Workpay enters this space by providing a complete HR and payroll solution tailored to the needs of African businesses.
What Workpay Offers
Founded by Paul Kimani and Jackson Kibigo, Workpay delivers a cloud-based HR and payroll software-as-a-service (SaaS) platform that covers the entire employee and contractor lifecycle, from onboarding to offboarding. The platform includes features like payroll processing, time and leave management, expense tracking, performance management, employee benefits administration, and Employer of Record (EOR) services. Workpay also ensures compliance with employee regulations across different African markets.
With over 1,000 businesses in more than 20 African countries already using its platform, Workpay is well-positioned to shape the future of employee financial services and benefits on the continent.
CEO Paul Kimani commented, “Our ambition is to become the preferred solution for employers and employees when it comes to managing HR, payroll, and work-related benefits. Our deep expertise in regulatory compliance across Africa enables businesses operating in multiple countries to handle payroll and taxes through a single, integrated platform. This funding will help us achieve profitability, marking a significant milestone for our company.”
Investor Perspectives
Ngetha Waithaka, General Partner at Norrsken22, noted, “Investing in Workpay presents an exciting opportunity to transform how African SMEs manage their employees. Africa has one of the largest working-age populations in the world, yet existing HR and payroll tools are not meeting their needs. With the integration of financial services, Workpay’s growth potential is enormous.”
Thomas Otter from Acadian Ventures said, “We are thrilled to continue our investment in Workpay. The company has built the most advanced, comprehensive HR and payroll platform, and is on track to become the leading HR solution across Africa over the next decade.”
Ryosuke Yamawaki, Partner at Verod-Kepple Africa Ventures, added, “We’ve watched Workpay’s leadership team demonstrate exceptional business acumen, evolving from a single-industry product to a unique platform addressing all HR needs for African businesses. We are excited to join this round and support Workpay in revolutionizing HR management in Africa.”
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