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Financial service platform PaidHR secures funding of $1.8 million to expand financial opportunities for Africa's workforce.

Nigerian HR tech company PaidHR secures a $1.8 million seed round, spearheaded by Accion Venture Lab, to broaden its payroll and Earned Wage Access (EWA) platform throughout Africa. Support comes from Zrosk, Chui Ventures, and Zedcrest Capital. Significance As approximately 44 million small and...

Financial service startup, PaidHR, attracts $1.8 million in funding to expand financial access for...
Financial service startup, PaidHR, attracts $1.8 million in funding to expand financial access for Africa's workforce.

Financial service platform PaidHR secures funding of $1.8 million to expand financial opportunities for Africa's workforce.

In a significant move to enhance financial inclusion and streamline operations for Small and Medium-sized Enterprises (SMEs) across Africa, Nigerian HR tech startup PaidHR has closed a $1.8 million seed funding round led by Accion Venture Lab. The funding aims to deepen PaidHR's market share in Nigeria, accelerate product development, and expand its customer success teams, while supporting its broader Pan-African expansion into Kenya and South Africa.

PaidHR offers an all-in-one platform that automates payroll, HRIS, compliance, performance management, tax and pension calculations, government filings, and benefits management. The platform's payroll system supports 49 currencies, allowing businesses to pay employees locally and across borders easily.

One of the standout features of PaidHR is its employee wallet app, which enables workers to receive and spend wages without needing to transfer funds to banks. The app processes over ₦1.3 billion (~$835,000) monthly, and the Earned Wage Access (EWA) feature allows employees to access part of their wages before payday, helping reduce dependency on predatory loans and easing financial stress.

Amee Parbhoo, Managing Partner at Accion Venture Lab, stated that PaidHR delivers meaningful financial inclusion for workers. By formalizing wage payments, connecting employees to financial products, and promoting financial stability, PaidHR aims to strengthen the SME sector, which constitutes a large part of Africa’s economy.

Currently, PaidHR serves over 250 businesses across sectors like logistics, retail, manufacturing, and banking, focusing on SMEs with fewer than 200 employees. Through earned wage access and integrated digital wallets supporting local currencies and USD, PaidHR empowers employees financially by enabling early wage access, savings, and credit opportunities tied to verified payroll data.

By 2030, half of all new entrants into the global labor force will come from sub-Saharan Africa. With 44 million SMEs in Africa providing an estimated 80% of jobs, PaidHR's expansion is set to make a significant impact. The startup plans to enhance features like compliance automation, HR analytics, and employee financial wellness tools to cater to this vast workforce.

The seed round was also participated in by Zrosk, Chui Ventures, and Zedcrest Capital. PaidHR's operations target a workforce that comprises 80% of Africa’s workforce, many of whom still manage HR manually. The platform's expansion aims to digitize payroll for these SMEs, offering them a more efficient and cost-effective way of managing their HR and payroll functions.

In 2024, PaidHR processed about ₦29 billion ($18 million) in salaries, nearly doubling its volume from 2023, signaling significant traction and impact in the SME segment. The startup onboarded 20,000+ employees across SMEs in logistics, retail, and manufacturing, marking a promising start to its ambitious expansion plans.

In summary, PaidHR’s expansion backed by fresh capital is set to deepen its footprint across Africa’s SME landscape, offering payroll and HR tech innovations that enhance financial inclusion by providing employees with early wage access, local currency wallets, and improved access to credit and savings, all of which can alleviate financial stress and promote economic empowerment within Africa’s vital SME sector.

  1. PaidHR's expansion into Kenya and South Africa, driven by technology, aims to bring payroll and HR tech innovations to the small and medium-sized businesses in these regions, furthering financial inclusion.
  2. By digitizing payroll for African SMEs, PaidHR, aided by its all-in-one platform that supports 49 currencies and offers features such as employee wallet apps, Earned Wage Access, and compliance automation, seeks to strengthen the financial stability of the business sector, thereby boosting productivity and driving economic growth.

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