Workpay, a rapidly growing HR and payroll technology firm founded by Kenyan entrepreneur Paul Kimani, has successfully raised $5 million in Series A funding to bolster its expansion and solidify its presence in Africa's burgeoning HR and benefits management sector.
The $5 million funding round, which significantly advances the startup's previous $2.7 million pre-Series-A capital raise in 2023 , was spearheaded by Pan-African venture capital firm Norrsken22. Visa and Plug Play also made substantial contributions, alongside support from existing investors. This comes as Workpay seeks to enhance its offerings and deepen its reach.
Strategic evolution and service expansionPaul Kimani, co-founder and CEO of Workpay, underscored the company's strategic evolution to meet evolving customer demands. "We've transformed our platform from a strong payroll solution into a comprehensive HR service," Kimani stated. "We also see potential to integrate financial services into our HR offerings. Given that companies already use our platform for employee payments, we are well-positioned to introduce services such as medical and vehicle insurance, and collaborate with partners to offer lending, savings, and investment options."
Despite the competitive landscape featuring global players, Kimani perceives these competitors as a sign of the market's vast potential rather than a deterrent. "The presence of international competitors highlights the significant opportunities within the market. Developing a continent-wide payroll solution is challenging due to diverse regulations and requirements across African nations," he added.
