Kenyan startup Workpay has successfully raised $5 million in a Series A funding round, led by the pan-African venture capital firm Norrsken22, with participation from Visa. This latest injection of capital brings Workpays total funding to nearly $10 million since its inception in 2019.
This funding round also saw renewed commitments from existing investors, including Y Combinator, Saviu Ventures, Axian Group, Plug N Play, Verod-Kepple Africa Ventures, and Acadian Ventures.
Workpay has evolved from a payroll-centric startup into a comprehensive HR solutions provider.
The company addresses the needs of small to medium-sized enterprises in Africa, which prefer integrated solutions for simplicity and cost efficiency. Workpay’s platform now includes features such as time and attendance tracking and performance management tools, catering to diverse business needs across sectors like manufacturing and remote work environments.
The startup’s growth strategy involves expanding its service offerings to include financial services, such as medical and vehicle insurance, and partnerships for lending, savings, and investment opportunities. This expansion aims to provide a holistic solution for businesses and their employees.
Despite increasing competition from global companies entering the African market, Workpay’s CEO, Paul Kimani E O, views this as a validation of the market’s potential.
He emphasizes the complexity of creating a universal payroll solution for Africa due to varying regulations across countries, which gives local companies like Workpay an edge in understanding and addressing these unique challenges.
Over the past 16 months, Workpay has onboarded nearly 500 new businesses to its platform, serving over 1,000 customers across 20 African countries.
Despite facing delays in its expansion into Francophone Africa, the company has seen its revenue grow by 1.5 times in the first half of 2024 and is on track to double by the end of the year.
