South African startup Jem HR, a pioneering WhatsApp-based platform for human resources and employee benefits, has successfully secured ZAR60 million (approximately US$3.3 million) in a pre-Series A funding round aimed at accelerating its growth and enhancing product development.
Originally founded in 2019 under the name SmartWage, the company underwent a rebranding in 2022 to become Jem HR. The platform initially focused on providing employees with instant access to a portion of their earned salaries and wages, allowing them to access funds for work they had already completed. This innovative approach addressed a critical need for financial flexibility among workers.
Building on its initial success, Jem HR expanded its offerings to provide businesses with a streamlined solution for digitizing their most labor-intensive HR processes. This evolution allows companies to save valuable time and resources, enabling them to concentrate more on their workforce. The platform empowers employees who do not have access to email by facilitating company-wide communication, enabling them to access payslips, request leave, and utilize financial wellness products—all through the convenience of WhatsApp.
The recent pre-Series A funding round was led by Old Mutual’s subsidiary, Next176, and includes a ZAR30 million (US$1.65 million) private debt facility. The capital raised will be instrumental in propelling the startup’s growth trajectory and advancing its product development initiatives.
“This funding represents a crucial milestone in our journey to fulfill our dual mission: to simplify the management and connection of frontline employees while providing them with valuable financial benefits,” stated Simon Ellis, co-founder and CEO of Jem HR. He emphasized the strong demand for their platform, which is driven by the pressing challenges faced by deskless workers, such as low wages, unreliable transportation, and safety concerns. The new funding will facilitate Jem HR’s expansion beyond Southern Africa, allow for team growth, and enhance their comprehensive platform to address HR, communication, and employee benefit challenges on a larger scale.
The ZAR30 million debt facility, which is designed to scale with usage, will enable Jem HR to introduce new products aimed at improving the lives of deskless employees. These offerings will include a savings tool, affordable insurance options, credit score support, a financial wellness helpline, and additional services such as airtime and data bundles.
Tramayne Monaghan, Chief Venture Officer at Next176, expressed enthusiasm for the investment, stating;
We invest in businesses that deliver sustainable, disruptive growth, and Jem is a prime example. Simon, Caroline, and the entire Jem team have developed a platform that is not only transformative for businesses but also profoundly impactful for employees. We are excited to support their ambitious vision as they scale their innovative solutions across Africa and beyond.
With this funding, Jem HR is poised to make significant strides in enhancing the HR landscape for deskless workers, ultimately contributing to improved financial well-being and job satisfaction across the continent.
