Lagos-based HR and payroll technology firm, PaidHR, has raised $1.8 million in seed funding to accelerate its growth and enhance its footprint across Africa’s enterprise and SME landscape. The round was led by Accion Venture Lab, with renewed support from existing investors Zrosk, Chui Ventures, and Zedcrest Capital.
Founded in 2020, PaidHR is currently operational in Nigeria, Kenya, and South Africa, and serves more than 250 businesses across diverse sectors including logistics, retail, and financial services. The new capital will be used to fuel product development, expand the company’s team, and drive deeper penetration into Africa’s fragmented payroll and compliance markets.
“This investment enables us to scale our services and deliver even greater value to our clients across the continent,” said Seye Bandele, CEO of PaidHR.
Reimagining Payroll in Africa
Africa’s HR tech sector is evolving rapidly, driven by the need to solve region-specific workforce challenges rather than replicating Western models. PaidHR is at the forefront of this movement, offering cross-border payroll support in 49 currencies—a critical feature for businesses operating across countries with varying regulatory requirements.
With a strong emphasis on compliance automation, HR analytics, and employee financial wellness, PaidHR is tackling one of the continent’s most pressing enterprise pain points: navigating shifting labor laws and maintaining regulatory compliance across borders.
This localized approach places PaidHR in a growing ecosystem of HR tech innovators like Workpay and Bento, who are similarly building end-to-end platforms for workforce and payroll management tailored to the African context.
HR Tech as a Pathway to Financial Inclusion
One of PaidHR’s standout offerings is its Earned Wage Access (EWA) integration, allowing employees to access earned salaries before payday. This feature reflects a broader trend of HR platforms serving as vehicles for financial inclusion in emerging markets, particularly where formal financial infrastructure is limited.
As formal employment often represents a worker’s first connection to financial services, platforms like PaidHR are positioned to become distribution channels for tools that promote household stability, savings, and economic resilience.
Similar to its competitors, PaidHR is pushing HR systems beyond administrative tasks, transforming them into platforms for digital finance, credit access, and wellness programs, thereby reshaping how financial services are delivered to Africa’s workforce.
A Vote of Confidence in Africa’s Resilient Tech Ecosystem
PaidHR’s successful seed round—coming two years after a $500,000 pre-seed round in 2022—illustrates continued investor confidence in Africa’s enterprise tech landscape, even amid a global venture funding slowdown.
The participation of both new and returning investors signals a maturing startup ecosystem, where early backers are increasingly doubling down on startups with solid unit economics and clearly defined value propositions.
The momentum around HR tech highlights a broader diversification of Africa’s tech investment landscape, as investors look beyond fintech into core business infrastructure tools that drive sustainable, long-term impact.
Looking Ahead
With this new infusion of capital, PaidHR is well-positioned to deepen its reach and influence in Africa’s evolving digital economy. As companies across the continent seek scalable, localized, and financially inclusive HR solutions, PaidHR is emerging as a key player in bridging the gap between human resource management and digital financial access.
