Kenyan HR and payroll startup Workpay has raised US$2.7 million in pre-Series A funding to expand its HR, payroll, compliance, and benefits tools across Africa.
Originally called TozzaPlus until it rebranded in 2019, Workpay is a cloud-based human resources management and payroll solution for small and medium-sized businesses (SMBs) in Africa. The startup’s time tracking and salary disbursement tools help African businesses save money and time by eliminating ghost workers from their payroll and inefficiencies associated with cash payments.
A Y Combinator graduate, the startup raised a US$2.1 million seed funding round in late-2021, and has now secured US$2.7 million in pre-Series A capital from global and Africa-focused investors, including Launch Africa Ventures, Saviu Ventures, Acadian Ventures, Proparco, Fondation Botnar, Kara Ventures, Norrsken and Axian, with the participation of P1 Ventures, an existing investor.
Workpay, which already expanded into Nigeria in 2021, provides HR solutions to over 600 businesses in over 20 countries across Africa, and has been adding new product lines in line with the remote work trend. This funding will support the company’s mission of empowering businesses to manage and pay their employees across Africa, regardless of location.
“Our solution meets the specific needs of HR and payroll across Africa, and with this new investment, we will continue scaling across the continent. Payroll is a strategic part of the payments value chain that allows us to build other products on top of it,” said the CEO and co-founder of Workpay, Paul Kimani.
Thomas Otter, general partner at Acadian Ventures, said Workpay was building a top-notch product, meeting the specific needs for HR and payroll in Sub-Saharan Africa.
“The addressable market in the region is fast-growing, and HR and payroll systems provide the foundation for fair and accurate pay. When combined with advances in mobile payments, solutions like Workpay can positively impact businesses and society,” he said.
