Nigeria-based PaidHR raises $1.8 million in seed round, its largest funding yet

Nigeria-based HR startup PaidHR has raised $1.8 million in a seed round led by Accion Venture Lab, with support from existing investors like Zrosk, Chui Ventures, and Zedcrest Capital.

Founded in 2020 by Seye Bandele and Lekan Omotosho, the latest funding round is the startup’s largest funding yet.

Before now, PaidHR had already raised $500,000 in late 2022 and an additional $600,000 in 2023. With the new funding round, the Nigerian-based startup had now raised a total of $2.9 million.

PaidHR’s goal is to change how businesses handle payroll and human resource management, especially for organisations with employees in different countries. Also, the company aims to create additional features that promote employees’ financial capability, provide HR clearance, and automate compliance.

With this fresh investment of $1.8 million, PaidHR plans to accelerate its product offering by hiring more people for customer support and expanding its presence across Africa’s growing business sector.

Reacting to the development, CEO and Co-founder Seye Bandele, the co-founder, noted that the funding is a major milestone in the company’s journey towards refining the human resources management system. With backing from new investors, Bandele believes the startup is on the right track to help African businesses operate and grow beyond borders.

“We are building HR management for the African context, and this funding allows us to scale our vision, expand our reach, and deliver even more value to our clients,” he said.

In his explanation on why they invested in PaidHR, Amee Parbhoo, managing partner at Accion Venture Lab, said that the startup’s technology not only simplifies HR operations but also utilises financial exploration tools like earned wage access and USD savings to improve employees’ livelihoods.

“It’s a meaningful step toward financial inclusion for underserved workers,” he added.

Also Read: WeThinkCode secures $2 million funding from Google to train 12,000 African youths in AI.

For the startup, the funding marks a new chapter as it works to expand and innovate in the HR tech space. Its commitment to make HR easier for businesses across Africa by helping companies pay staff in local currencies and give employees more control over their finances has been set at a new pace.

PaidHR’s journey so far

PaidHR raising $1.8m in a seed round is a significant step for both the company and the African HR tech industry. While the startup’s roadmap hasn’t been a free flow, the company started small by focusing on employee engagement.

After landing its first big client, it shifted to serving both SMEs and large enterprises. Amid its growing tide, PaidHR’s ability to adapt and listen to customer feedback has helped it grow and become a leader in Africa’s human resources management ecosystem.

PaidHR’s main product is a platform that helps businesses manage payroll, HR information, compliance, performance, and even gives employees early access to their wages. The company’s special offering is its cross-border payroll system, which supports 49 different currencies. With this, the companies can pay their workers in their local currencies, no matter where they are, making it easier to manage international teams.

“We are building HR management with an African context, and some of our users have requested this feature. This has been the roadmap for PaidHR since 2021. The product involves a marriage of HRTech and Fintech,” Bandele said.

Since its launch in 2020, PaidHR has helped over 200 companies, including 100 African businesses, streamline their HR processes.

In 2023 alone, PaidHR processed over ₦11.4 billion in salaries and expects to double this in 2024. Their cross-border payroll feature is now significant, as the Nigerian naira has lost a lot of value, making it important for organisations to pay employees in stable currencies.