Nigerian HR-tech startup PaidHR, established in 2020 to streamline human resources functions for African businesses, is in talks to raise $1.5 million in a seed round to bolster its market expansion and fuel the rollout of a new cross-border payroll product. This fundraising follows a successful $500,000 pre-seed round in February 2023 with backing from prominent investors like Zrosk IML, Zedcrest Capital, Microtraction, Expert Dojo, and Resilience 17. In 2023 alone, PaidHR facilitated the processing of ₦11 billion in salaries for its clients, demonstrating significant growth.
The startup’s latest innovation, a cross-border payroll service, is engineered to simplify payments for multinational employers, enabling payroll in 49 currencies, allowing employees to receive their pay in local or preferred currency. The feature also includes a digital wallet, giving employees flexibility to convert salaries into different currencies and make direct purchases. Partnering with licensed financial institutions for regulatory compliance, PaidHR’s cross-border solution is poised to generate revenue through transaction fees, marking a strategic shift in how African companies manage employee compensation across borders.
Seye Bandele, CEO of PaidHR, notes that the development of the cross-border payroll stems from user requests for an African-centric payroll system that accommodates regional and international payment needs. “We are building a solution tailored for Africa, but for businesses with a global workforce,” said Bandele.
The cross-border payroll service will be particularly beneficial for Nigerian employees, who make up 80% of PaidHR’s clientele. With the naira’s 70% devaluation since May 2023, many workers are looking to stabilize earnings by converting part of their salaries to foreign currency. Additionally, the new feature follows PaidHR’s recent introduction of Earned Wage Access (EWA), which allows employees to access part of their wages prior to payday, enhancing financial flexibility for users.
In line with its expansion goals, PaidHR anticipates entering three new African markets by Q2 2025, aiming to grow beyond its current portfolio of 200 businesses and bolster its suite of HR products that includes onboarding, HRIS, payroll, compliance management, performance tracking, asset management, disciplinary procedures, and exit processes.
