PaidHR in talks for $1.5million seed round; introduces new cross-border payroll

PaidHR, a Nigerian startup that helps businesses manage their HR functions, is in talks with investors to raise a $1.5 million seed round. The company, which claimed it processed ₦11 billion in salaries in 2023, raised $500,000 in February 2023 from investors like Zrosk IML, Zedcrest Capital, Microtraction, Expert Dojo, and Resilience 17.

Founded in 2020, the startup is raising new funding to expand into new markets and scale its new product: a cross-border payroll that allows employees to be paid in multiple currencies.

The cross-border payroll, which supports 49 currencies, will allow companies with employees in different countries to pay in their local currency. It is an important part of PaidHR’s expansion strategy.

PaidHR’s cross-border payroll solution features a wallet that allows employees to convert their pay into any preferred currency and spend directly. To ensure regulatory compliance, PaidHR doesn’t hold customer deposits but partners with licensed financial institutions for transactions. PaidHR will earn transaction fees.

“We are building HR management with an African context and some of our users have requested this feature,” said PaidHR CEO Seye Bandele. “We are building a cross-border solution but for the employed.”

PaidHR’s cross-border payroll adds to its suite of product which helps organizations with onboarding, HRIS, payroll, compliance, performance management, asset management, disciplinary actions, and exit processes for their employees. Last year, the startup introduced Earned Wage Access (EWA) which allows employees to access a portion of their earned wages before payday.

“Before creating the wallet feature, we thought of a way to help users spend from where they earn,” Bandele said.

The introduction of cross-border payroll will also serve as a buffer for Nigerians—who account for 80% of PaidHR’s clients—seeking to hedge against the naira by converting their salaries to FX of choice. The nation’s currency has been devalued by 70% since May 2023 forcing citizens to find alternatives.

The new feature is expected to contribute significantly to PaidHR’s revenue. The startup, which currently serves over 200 businesses claims it has processed over ₦20 billion in salaries since the start of the year. The company is looking to expand into three new markets by Q2 next year.

Get the best African tech newsletters in your inbox

ObadeYemi

Adeyemi is a certified performance digital marketing professional who is passionate about data-driven storytelling that does not only endear brands to their audiences but also ensures repeat sales. He has worked with businesses across FinTech, IT, Cloud Computing, Human Resources, Food & Beverages, Education, Medicine, Media, and Blockchain, some of which have achieved 80% increase in visibility, 186% increase in month on month sales and revenue.. His competences include Digital Strategy, Search Engine Optimization, Paid per Click Advertising, Data Visualization & Analytics, Lead Generation, Sales Growth and Content Marketing.

Share
Published by
ObadeYemi

Recent Posts

How to scale your hypergrowth marketing team from 5 to 25 people using this template

In times of chaos, marketing team structure is often overlooked, but for companies in hypergrowth,…

24 hours ago

YouTube, newsletters, and X — the AI workflows that will help you dominate them all

Let‘s be honest: if you’re running a business focused on AI tools and you‘re not…

24 hours ago

16 best practices for email design, according to an email marketing consultant

Email design is a mix of art and science. You can have the best email…

2 days ago

Marketing without the cringe: Jayde Powell on Gen Z audiences

I am “just threw out my back while turning to adjust my seatbelt” years old,…

3 days ago

Leon Kiptum, fintech executive who believed in people and purpose, dies at 44

When Leon Kiptum left his role at Flutterwave in June, his goodbye post on LinkedIn…

3 days ago

Update: DigiTax gets technically approved to expand into Nigeria

DigiTax, a pan-African e-invoicing firm, has secured technical approval from Nigeria’s Federal Inland Revenue Service…

3 days ago