- Workpay, a Kenyan cloud-based workforce management platform, has announced a $5 million Series A funding round, following a $2.7 million pre-Series A in 2023.
- Norrsken22, a tech growth fund, led the Series A round, while several investment firms, including Visa, Axion, and Y Combinator, participated.
- The startup will use the investment to enhance its performance management tool with artificial intelligence, solidify its expansion across Africa, and stabilise its financial services provision.
Founded by Paul Kimani and Jackson Kungu in 2019, Workpay provides a comprehensive cloud-based payroll and HR SaaS platform that manages the entire journey of employees and contractors from onboarding to offboarding.
With services including payroll processing, time tracking, leave management, expense tracking, performance management, employee benefits administration, and Employer of Record (EOR) solutions, Workpay has established a strong presence in over 1,000 businesses across 20 African countries.
By leveraging its time and attendance tracking features, Workpay helps businesses enhance productivity, improve employee accountability, ensure adherence to labour laws for remote workers, and streamline workforce planning.
The HR startup, which secured a $2.1 million investment to expand across East Africa in 2020, serves two types of customers: businesses with 20-100 employees in the same jurisdiction and companies with 100-1,000 employees across multiple regions.
Per the company, it has achieved a 1.5x increase in revenue growth in the first half of 2024. Kimani stated that the company plans to continue scaling by navigating the diverse regulatory environments, especially for international players.
In addition to its payroll services, the startup aims to offer a comprehensive HR solution that includes medical and vehicle insurance. The company also plans to explore partnerships for lending, saving, and investment options, catering to both corporate and employee needs with a focus on simplicity and cost-effectiveness.
Workpay was among the selected startups for Visa’s Fintech Accelerator, launched in November 2023 and is the only company to have publicly secured funding from Visa. In 2024, the multinational payment corporation has partnered with Nigerian fintech Lemfi, an Egyptian banking company, Ghana’s GhIPSS, and Absa Bank Kenya.
