A startup in Nigeria specializing in HR services is currently in discussions with investors to secure a seed funding round of $1.5 million. The company, which reported processing ₦11 billion in salaries in 2023, had previously raised $500,000 in February 2023 from various investors.
Established in 2020, the startup aims to use the new funding to expand into different markets and scale its latest product, a cross-border payroll system enabling employees to receive payments in multiple currencies.
The cross-border payroll feature supports 49 currencies, facilitating companies with staff in various countries to pay salaries in local currencies. This feature aligns with the startup’s growth strategy.
The innovative payroll solution includes a wallet for employees to convert their wages into their preferred currency for direct spending. To maintain compliance with regulations, the startup collaborates with licensed financial institutions for transactions and earns revenue through transaction fees.
The CEO of the startup mentioned, “We are tailoring HR management to suit the African context, and some users have expressed interest in this feature. We are developing a cross-border solution specifically for employed individuals.”
In addition to the cross-border payroll system, the startup offers a range of products assisting organizations with various HR functions such as onboarding, payroll, compliance, performance management, asset management, disciplinary actions, and exit procedures for employees. Recently, the startup introduced Earned Wage Access (EWA), allowing employees to access a portion of their wages before payday.
This latest addition of the cross-border payroll feature will not only benefit Nigerians, who make up 80% of the startup’s client base, by offering a way to hedge against the devaluation of the naira but also open up new revenue streams for the company. With over 200 businesses currently served and claims of processing over ₦20 billion in salaries since the beginning of the year, the startup is looking to expand into three new markets by the second quarter of the following year.