Kenyan HR startup WorkPay raised $5 M Series A funding to expand across continent

In order to support its expansion throughout the continent and the expansion of its financial services offering, Kenya’s Workpay, a cloud-based platform for HR, payroll, and benefits for businesses with workers throughout Africa, has raised US $5 million in a Series A funding round.

Workpay is a cloud-based payroll and HR management solution for small and medium-sized businesses (SMBs) in Africa. It was formerly known as TozzaPlus until it changed its name in 2019. By removing ghost workers from payroll and the inefficiencies that come with cash payments, the startup’s time tracking and salary disbursement tools help African businesses save money and time.

WorkPay has now secured a US $5 million Series A round led by Norrsken22. The company had previously raised US $2.7 million in pre-Series A funding in February 2023.

“Our goal is to become the go-to solution for employers and employees in managing HR, payroll, and work-related benefits. Our deep understanding of regulation across the African continent allows businesses working across multiple countries to manage payroll and tax using a single integrated platform. This raise will support Workpay to reach profitability, a huge milestone for our company,” said Paul Kimani, CEO of Workpay.

The company’s investment in Workpay, according to Ngetha Waithaka, general partner at Norrsken22, offered an exciting opportunity to completely transform the way SMEs in Africa handle employee management.

“Africa boasts one of the largest working age populations in the world and they remain grossly underserved by existing HR and payroll tools. With the addition of integrated financial services, Workpay’s potential for growth is immense,” Waithaka said.