PaidHR, an innovative Nigerian startup specializing in HR management solutions, is currently engaged in negotiations with potential investors to secure a seed funding round of $1.5 million. This financial move comes on the heels of a successful $500,000 funding round in February 2023, which saw contributions from a diverse group of investors including Zrosk IML, Zedcrest Capital, Microtraction, Expert Dojo, and Resilience 17.
Established in 2020, PaidHR has made significant strides in the HR tech space, boasting an impressive ₦11 billion in processed salaries for the year 2023 alone. The startup’s ambition to raise additional capital is driven by its strategic plan to penetrate new markets and enhance its product offerings, particularly focusing on the development and scaling of its innovative cross-border payroll system.
The cross-border payroll system is a revolutionary product designed to facilitate multi-currency salary payments for businesses with an international workforce. Supporting an array of 49 currencies, this system enables employers to compensate their employees in their respective local currencies, thereby simplifying the payroll process for multinational companies. This feature is a cornerstone of PaidHR’s growth strategy and reflects the company’s commitment to addressing the specific needs of its user base.
A standout feature of PaidHR’s cross-border payroll solution is the integrated wallet functionality, which empowers employees to convert their earnings into their currency of choice and utilize those funds directly for transactions. To maintain regulatory compliance and ensure the security of customer funds, PaidHR collaborates with licensed financial institutions to handle all transactional aspects, while the company itself generates revenue through transaction fees.
Seye Bandele, the CEO of PaidHR, emphasizes the company’s dedication to creating HR management solutions tailored to the African market. The development of the cross-border payroll system is a direct response to user demand for such a feature, demonstrating PaidHR’s responsiveness to its clientele’s evolving needs.
In addition to the cross-border payroll, PaidHR offers a comprehensive suite of HR management tools that assist organizations in various HR-related tasks, including employee onboarding, HR information systems (HRIS), payroll management, compliance, performance evaluation, asset management, disciplinary procedures, and employee offboarding. In the previous year, PaidHR introduced the Earned Wage Access (EWA) service, which allows employees to access a portion of their earned income ahead of the scheduled payday.
The cross-border payroll system also presents a strategic solution for Nigerian clients, who make up 80% of PaidHR’s customer base, in light of the recent 70% devaluation of the Nigerian naira since May 2023. This feature offers a valuable financial hedge by enabling them to convert their salaries into a foreign currency of their choosing.
With the anticipated launch of the cross-border payroll, PaidHR expects a significant boost to its revenue streams. The company, which currently caters to 20 businesses with a combined workforce of 60,000 employees, has processed over ₦20 billion in salaries since the beginning of the year. Looking forward, PaidHR aims to extend its reach into three additional markets by the second quarter of the following year, further solidifying its position as a leader in the HR tech industry.
