Jem HR raised $3.3 M Pre-series A funding to accelerate growth, product development
In order to boost its expansion and product development, the South African startup Jem HR, an HR and employee benefits platform built on WhatsApp, has closed a ZAR60 million (US$3.3 million) pre-Series A funding round.
Established in 2019 under the name SmartWage and rebranded in 2022, Jem HR began by enabling businesses to give their workers immediate access to a portion of their pay and compensation for labor completed.
Beyond that, it allowed businesses to digitize their most time-consuming HR procedures in a straightforward yet efficient manner, saving them money and time so they could concentrate on their people. The product allows workers without email to access their paystubs, request leave, receive company-wide communications, and access financial wellness products through WhatsApp.
The pre-Series A round consists of a ZAR30 million (US$1.65 million) private debt facility and equity funding led by Next176, an Old Mutual subsidiary. It will be applied to expedite the development of new products and the expansion of the startup.
“This funding is a pivotal step in enabling us to achieve our dual mission: to make managing and connecting frontline employees effortless while providing them with money-saving financial benefits,” said Simon Ellis, co-founder and CEO of Jem HR.
“We’re seeing strong demand for our platform, driven by the need to address the challenges faced by deskless workers, including low wages, unreliable transport, and safety concerns. The new funding will allow us to expand beyond Southern Africa, grow our team, and enhance our all-in-one platform to tackle HR, communication, and employee benefit challenges at scale.”
A savings tool, affordable insurance, credit score support, a financial wellness helpline, and value-added services like airtime and data bundles are just a few of the new products Jem will be able to introduce thanks to the ZAR30 million debt facility, which grows with usage.
“We invest in businesses that deliver sustainable, disruptive growth, and Jem is a prime example. Simon, Caroline, and the entire Jem team have built a platform that is not only transformative for businesses but also deeply impactful for employees. We are excited to support their bold vision as they scale their innovative solutions across Africa and beyond,” said Tramayne Monaghan, chief venture officer at Next176.
