Kenyan HR and payroll startup Workpay has secured $5 million in Series A funding, led by pan-African venture capital firm Norrsken22.
The raise also saw participation from Visa and existing investors like Y Combinator and Saviu Ventures, and brings Workpay’s total raised to nearly $10 million since its inception in 2019.
The company plans to use the funds to expand its financial services offerings, enhance its performance management tools with AI, and grow its workforce, further strengthening its position in the HR tech space in Africa.
Managing payroll in Africa presents unique challenges due to varying regulations, the rise of remote and hybrid work, and the reliance on outdated tools like Excel and Google Sheets by around 80% of small and medium-sized businesses.
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These businesses often find it difficult to afford or maintain complex payroll systems, while on-site third-party solutions offer limited features, and global platforms like Rippling and Gusto are not always well-suited to the African market.
Local solutions, such as YC-backed Workpay, have emerged as valuable alternatives, offering tailored, affordable, and user-friendly payroll management systems that address the specific needs of businesses on the continent.
This local focus allows companies like Workpay to thrive, providing tools that are better aligned with the regulatory and operational complexities of African businesses.
