SeamlessHR, a pioneering HR-tech startup based in Nigeria, has recently made headlines by securing a $9 million Series-A extension funding round from notable investors, including the Gates Foundation and Helios Digital Ventures. This financial boost is set to fuel the company’s ambitious plans to broaden its customer base by strategically targeting government agencies, thereby positioning itself to capitalize on the burgeoning public sector market in Nigeria.
With a workforce comprising over 720,000 civil servants, the Nigerian government presents a lucrative opportunity for SeamlessHR, offering a stable and high-value market that is ripe for long-term growth. Historically focused on serving mid-to-large enterprises, SeamlessHR is now actively engaging in discussions with various ministries, departments, and agencies (MDAs), including the National Information Technology Development Agency (NITDA), to onboard them onto its innovative platform. An insider, who previously worked with the company, revealed that SeamlessHR has already established a foothold in the public sector by providing performance management services to the Nigeria Port Authority (NPA) and recruitment solutions for the 3 Million Technical Talent (3MTT) initiative, as confirmed by the company’s Chief Technology Officer, Deji Lana.
Lana expressed confidence in the company’s ability to transition successfully into the public sector, citing the solid foundation built through its success in the private sector. “If we’ve successfully implemented our solutions for private enterprises, there’s no reason we can’t achieve the same for government agencies,” he stated. While acknowledging that unique configurations may be necessary for public sector needs, Lana is optimistic that SeamlessHR’s platform can adapt to meet these specific requirements.
The company aims to tackle persistent challenges within the public sector, such as transparency issues, the prevalence of ghost workers, and the unequal distribution of resources. Lana emphasized the importance of addressing these concerns, stating, “We need to engage in this space to ensure that issues like fairness, transparency, and equity in resource allocation can be effectively resolved through our platform.”
As SeamlessHR ventures into the government sector, it faces a competitive landscape in Nigeria’s HR-tech market, where new entrants like PaidHR, Bento, Ropay, WorkPay, Cloudenly, and NotchHR are emerging and challenging its market position. Despite this competition, Lana remains steadfast in his belief that SeamlessHR’s primary competitors are global HR-tech leaders such as SAP, Zoho, and Oracle, who have already developed comprehensive end-to-end HR solutions at scale. “From the outset, our goal has been to create a complete HR tech solution,” Lana remarked. “While some of our global competitors have achieved this, our deep understanding of local challenges gives us a distinct advantage.”
The Nigerian government sector represents a particularly enticing opportunity for SeamlessHR, with entities like Remita—responsible for managing transactions totaling approximately ₦21 trillion annually—illustrating the market’s potential for startups. SeamlessHR envisions playing a pivotal role in the government’s digital transformation by delivering efficient and scalable HR solutions.
However, entering the government sector is fraught with challenges. Many government agencies rely on legacy systems that have accumulated years of data and integrations with other platforms, making the migration to SeamlessHR’s system a potentially complex and costly endeavor. Nevertheless, Lana is optimistic about facilitating this transition, stating, “Government organizations don’t need to switch everything at once. They can pilot any of our individual modules before committing to a full transition.”
Another significant challenge SeamlessHR faces is the lengthy sales cycle typically associated with government contracts. The public sector procurement process can be slow and bureaucratic, potentially delaying revenue generation for the company. However, the prospect of securing long-term contracts makes this effort worthwhile.
In addition to its expansion into the government sector, SeamlessHR is also exploring new technological integrations, including artificial intelligence (AI). Lana hinted at the development of an AI-powered recruitment agent capable of conducting interviews, which would further enhance the platform’s functionality.
As SeamlessHR looks to the future, its focus remains on modernizing HR functions within Nigeria’s public sector. The company’s success in navigating bureaucratic complexities, securing government contracts, and facilitating the migration of public institutions from legacy systems will be crucial determinants of its performance in this new sector.
