Workpay, a Kenyan HR startup, has announced that it has successfully raised $2.7 million in a pre-Series A funding round. The funding round included several investors such as Launch Africa, Saviu Ventures, Acadian Ventures, Proparco, Fondation Botnar, Kara Ventures, Axian, P1 Ventures, and Norrsken. Workpay is set to expand its services in 40 countries in Africa. With this latest funding round, the startup plans to launch a payroll engine that can serve customers in additional markets and release an API to enable accounting firms to be payroll providers.
Workpay, founded in 2019 by co-founder and CEO, Paul Kimani, and COO, Jackson Kungu, provides a complete employee management solution tailored towards aligning time management, payroll, and salary payments. The startup launched its operations in Nigeria in 2021. Workpay is known for offering basic HR functions to its clients and is adding financial services including linkages to investment accounts, medical and asset insurance, and earned-wage access for employees attending to emergencies or bills. The startup aims to build a marketplace bringing in other players that can serve employers and employees on its platform.
In 2020, Workpay raised $2.1 million in a seed funding round led by Kepple Africa Ventures with participation from Y Combinator, Soma Capital, Musha Ventures, P1 Ventures, and other angel investors. Since the COVID-19 pandemic, the startup has experienced significant growth in revenue and clientele. Kimani states that “since 2021 we have been doubling revenue every year, and the number of our customers is nearing 700 as we speak. We also have about $200 million in total payroll value that we are handling for our customers annually.”
Workpay’s current services provide companies with a comprehensive HR and payroll management solution. Their services are designed to streamline the management of employee time and attendance, payroll processing, and tax compliance. The platform allows employers to manage the entire employee life cycle, from recruitment to retirement.
Workpay is focusing on expanding its services to cater to the diverse needs of its customers. The startup’s addition of financial services including investment accounts, medical and asset insurance, and earned-wage access for emergencies, makes it a one-stop-shop for employers and employees. The startup is also looking to expand its services beyond Kenya and Nigeria by venturing into 40 countries in Africa.