NAIROBI, Kenya- Workpay, a rising Kenyan startup that’s making waves with its cloud-based HR and payroll solutions, just scored a cool Ksh. 645 million (USD 5 million) in Series A funding.
Leading the charge was Pan-African venture capital firm Norrsken22, with heavy hitters like Visa and Plug n Play also jumping into the mix.
This latest cash injection signals a significant boost for Workpay as it looks to scale its operations across the continent.
Let’s face it—payroll management in Africa isn’t a walk in the park. With a mishmash of regulations, the rise of remote work, and hybrid workplaces becoming the norm, businesses are struggling to keep up.
Around 80pc of small and medium-sized enterprises (SMEs) still rely on Excel and Google Sheets to handle payroll. Why? Because the complex systems that could ease the burden are often too pricey or just plain difficult to maintain. That’s where the need for innovative payroll management systems comes in.
In just the past 16 months, Workpay has onboarded nearly 500 new businesses, bringing its total client base to over 1,000 across 20 African countries.
The company had plans to push into Francophone Africa, which would have nearly doubled their reach, but that expansion is now on hold as they consolidate their current gains.
However, their existing footprint is already impressive, showcasing their ability to scale effectively in a challenging market .
The company’s Co-founder and CEO, Paul Kimani, shared that they’re shifting gears to offer a more comprehensive HR service.
“The shift in customer needs has pushed us to expand our product from being a solid payroll solution to offering a more full-stack HR service,” Kimani explained.
This evolution includes layering financial services on top of their existing offerings. Since businesses are already using Workpay to handle employee payments, they can now offer additional perks like medical and vehicle insurance.
Plus, they’re partnering with providers to offer lending, savings, and investment options—turning Workpay into a one-stop shop for HR and financial services.
While global players are eyeing the African market, Kimani sees this as a validation of the market’s untapped potential. “We’re not overly concerned about competition from global players. There is still significant work to be done across Africa, both by external companies and ourselves,” Kimani said.
Building a comprehensive payroll solution for the entire continent is no small feat, given the unique regulations and requirements in each country.
But Workpay seems up for the challenge, focusing on developing a solution that truly meets the needs of African businesses.
