PaidHR, a fast-rising Nigerian HR-tech startup, is currently in talks to raise $1.5 million in seed funding to scale operations and roll out a new cross-border payroll product. This initiative follows a successful $500,000 pre-seed investment earlier this year from notable investors, including Zrosk IML, Zedcrest Capital, and Microtraction. Since its inception in 2020, the company has demonstrated significant traction, processing ₦11 billion in salaries in 2023 alone and is positioned to reshape payroll management for businesses operating across borders.
Breaking New Grounds with Cross-Border Payroll
The cross-border payroll product is at the core of PaidHR’s growth strategy. With support for 49 currencies, the solution enables companies with employees in multiple countries to pay salaries in their local currencies. The system incorporates an employee wallet, facilitating currency conversions and direct spending, empowering businesses to retain talent by providing salary flexibility.
In a time when the Nigerian naira has experienced severe devaluation—losing 70% of its value since May 2023—the new payroll solution provides employees with a way to safeguard their income by converting it to foreign currencies. This feature will appeal to businesses in Africa and beyond, ensuring financial stability for employees while easing payment complexities for employers.
PaidHR’s innovative payroll offering is made possible through partnerships with licensed financial institutions, ensuring compliance without holding customer deposits. The company aims to generate revenue through transaction fees, complementing its existing HR management suite that covers onboarding, compliance, payroll, and performance management.
Competitive Landscape and Strategic Expansion
The African HR-tech sector is rapidly growing, with startups like SeamlessHR and EarniPay raising millions to introduce payroll and employee management tools. In this environment, PaidHR’s cross-border payroll system is a timely innovation. Other firms like Deel, which have capitalized on remote global talent, show the potential for scalable payroll systems across multiple geographies.
PaidHR currently serves over 200 businesses and has processed more than ₦20 billion in salaries in 2024. With this momentum, the startup plans to enter three new markets by Q2 2025, aiming to position itself as a leader in HR management for Africa’s burgeoning remote workforce.
A Growing Ecosystem with an African Focus
Seye Bandele, CEO of PaidHR, emphasized that the company’s expansion is driven by a deep understanding of the African employment landscape. “We are building HR management with an African context, and some of our users have requested this feature,” Bandele noted, emphasizing the demand for flexible payroll solutions tailored to local realities.
The introduction of cross-border payroll aligns with the company’s earlier successes, such as the Earned Wage Access (EWA) feature, which allows employees to access a portion of their wages before payday. With the additional funding, PaidHR is poised to deepen its product offerings and support businesses navigating Africa’s dynamic workforce needs.
As the global HR-tech market continues to expand, PaidHR’s efforts to enhance employee satisfaction and simplify payroll processing signal a promising future for the company—and for African startups looking to lead in digital HR solutions.