Kenya’s Workpay, a cloud-based HR, payroll and benefits platform for organisations with employees across Africa, has raised US$5 million in a Series A funding round to help it expand across the continent and build out its financial services provision.
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.
WorkPay raised US$2.7 million in pre-Series A funding in February 2023, and it has now secured a US$5 million Series A round led by Norrsken22. The round also includes participation from Visa, Y Combinator, Saviu Ventures, Axian, Plug n Play, Verod-Kepple Africa Ventures and Acadian Ventures.
“Our goal is to become the go-to solution for employers and employees in managing HR, payroll, and work-related benefits. Our deep understanding of regulation across the African continent allows businesses working across multiple countries to manage payroll and tax using a single integrated platform. This raise will support Workpay to reach profitability, a huge milestone for our company,” said Paul Kimani, CEO of Workpay.
Ngetha Waithaka, general partner at Norrsken22, said the firm’s investment in Workpay offered an exciting opportunity to revolutionise how Africa’s SMEs carry out their employee management.
“Africa boasts one of the largest working age populations in the world and they remain grossly underserved by existing HR and payroll tools. With the addition of integrated financial services, Workpay’s potential for growth is immense,” Waithaka said.
