TLcom Capital backs Nigeria’s SeamlessHR in $10m Collection A spherical

Nigerian startup SeamlessHR, which offers payroll and HR software-as-a-service (SaaS) options for medium to large-sized firms in a number of African nations, has closed a brand new $10 million Collection A spherical.

Africa-focused VC agency, TLcom Capital led the spherical whereas a few of SeamlessHR’s current traders participated as soon as once more, equivalent to Lateral Capital and Enza Capital. Different traders on this spherical embody Capria, Ingressive Capital, and various strategic non-public traders. The brand new funding brings complete investments secured by the startup to $12.2 million, having beforehand raised $2.2 million seed in October 2020. 

With the funding, SeamlessHR plans to additional develop its staff of 130 because it eyes a pan-African enlargement with new South Africa and Kenya workplaces being mulled. The corporate additionally plans so as to add new product functionalities round synthetic intelligence and HR information analytics, it stated, along with a brand new embedded finance product at the moment being piloted.

SeamlessHR began in 2013 as, a jobs aggregator with a recruitment administration system that matched employers to job seekers. That was till its co-founders Emmanuel Okeleji and Deji Lana realised job websites may “do little to handle the elemental causes of unemployment in Africa,” the previous informed TechCabal in an interview. 

After a number of iterations, the founders made a strategic pivot, relaunching in 2018 as an enterprise-grade, cloud-based HR and payroll administration SaaS. SeamlessHR is at the moment utilized by a whole lot of firms in Nigeria, Ghana, and Tunisia, together with famend manufacturers like PwC, Flutterwave, Sterling Financial institution, TGI Group, Lagos Enterprise Faculty, AXA, and Chapel Hill Denham, in accordance with the corporate. Greater than 100,000 staff from these organisations use SeamlessHR month-to-month.

“Because of our prospects, we now have turn out to be the main cloud HR and Payroll SaaS in Africa in such a short while,” CEO Okeleji stated. “We at the moment serve many of the medium to large-sized companies [including ten Nigerian banks and five insurance companies] in nations the place we’re concentrated, with Nigeria being our focus market.” 

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SeamlessHR is a part of a cohort of startups which can be reinventing the executive stack in organisations. Others embody YC-backed Workpay and Bento. However the firm has some product benefits in comparison with different options and seems to be a market chief.

Firstly, firms in some circumstances sometimes set up “core HR” software program whereas they run payroll utilizing one other bundle or in-house. Switching from one siloed resolution to the opposite will be extremely exhausting. SeamlessHR’s holistic options stop this as its cloud platform allows shopper organisations and their folks to automate and optimise your complete HR course of, from recruitment to retirement. Along with the core HR administration system, it gives completely different instruments to trace analytics in addition to handle efficiency and competency, worker recruitment, depart, and payroll.

Okeleji additionally identified the user-friendliness of SeamlessHR, which has enabled it to seize some market share from different HR administration SaaS suppliers, significantly international gamers Oracle and SAP. “Some programs are so advanced to make use of that it’s good to be licensed. For SeamlessHR, it’s user-friendly sufficient to grasp with only one coaching through the onboarding,” he stated.

Will Poole, Managing Companion at Capria notes that SeamlessHR is addressing the wants of African enterprises in “ways in which the worldwide giants can’t compete with by constructing customer-centric SaaS designed from the ground-up to handle complexity distinctive to the continent.”

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In Africa, SeamlessHR has a giant market alternative as each giant firm wants an HR and payroll resolution. There’s additionally a rising urge for food for cloud computing options by organisations that want to digitise their workplaces. From an estimated market dimension of $14.2 billion in 2021, the Center East and Africa’s cloud computing business is predicted to develop to $31.4 billion by 2026. “For an organization that has 20 staff, HR software program is a pleasant to have. However in case you have 600 staff, then you could have a ache that we clear up,” the CEO stated.

After capturing the Nigerian market to a big extent and rising headline income 3x year-on-year (besides in 2020 as a result of pandemic-induced financial slowdown), the startup has now set its sights on firms in different African nations.

However discovering the precise expertise stays a key downside. As well as, the dimensions and readiness of the African financial system for software program providers is comparatively small and nascent, in accordance with Okeleji. “If we have been an American firm, we’d most likely be doing 6x progress for the efforts we put in as a result of the financial system is larger and we’d have much more prospects and may cost increased costs.”

To increase its shopper base, the CEO doesn’t rule out increasing SeamlessHR to markets outdoors of Africa however notes that for now, the main target is on Africa and the staff isn’t “distracted”.

“That is solely the start. We’re dedicated to buyer success and this funding will allow us to put money into the continual optimisation of buyer expertise throughout all touchpoints, including new options and functionalities ranging from Q2 this 12 months,” Okeleji stated.

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