YC-backed HR-payroll provider Workpay raises $2.7M to scale in Africa

The HR payroll market across the world is expected to record a compound annual growth rate (CAGR) of 9.2%, reaching a $14.31 billion valuation by the close of this decade, buoyed by the increased demand for payroll and other HR solutions.In emerging markets, the growing awareness of HR payroll tech solutions, and a spiking number of small and medium-sized businesses is expected to drive the uptake of these solutions, as more companies go online to streamline their operations. He added that the startup will also release an API to enable, for instance, accounting firms to be payroll providers.Kimani, who co-founded Workpay with Jackson Kungu (COO), sees a big opportunity for market leadership in Africa, having built the tech and non-tech infrastructure to enable it to scale.On the tech side, we have integrated with nearly everyone who is processing payments to allow us to send money to as many countries in Africa as possible. Non-tech means we have established a presence in these countries, and have partners that allow us to be compliant, which is very important, he said.Launched in 2019, Workpay offers tools that enable its clients to pay salaries in local currencies across Africa (and outside the continent through the startups partners), file taxes and process employee benefits. And ours is a very neat platform that processes payrolls, and helps employers to be compliant, said Kimani.As an employer you are able to pay employees wherever they are, and in their preferred accounts they dont have to be forced to open accounts with specific banks just because the employer banks there and file taxes too, he said.An employee-side app enables workers to receive and view their pay slips, make expense requests and apply for leave days.Workpay is also adding financial services on top of its HR and payroll platform including linkages to investment accounts, medical and asset insurance and earned-wage access for employees attending to emergencies or bills.We are building a marketplace, and bringing in other players that can serve employers and employees on our platform, said Kimani.Kimani says Workpay has experienced great growth in revenue and clientele, with a spurt noted after the COVID slowdown of 2020.Since 2021 we have been doubling revenue every year, and the number of our customers who are nearing 700 as we speak. The addressable market in the region is growing rapidly and HR and payroll systems provide the foundation for fair and accurate pay.