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.
