Expansion funding for ZAR60 Million granted to Jem HR for expanding WhatsApp-centric HR platform catering to deskless laborers.
South African Startup Jem HR Secures ZAR60 Million in Pre-Series A Funding
Jem HR, a South African startup that specializes in human resources and employee benefits, has secured ZAR60 million (US$3.3 million) in pre-Series A funding. This investment is seen as a significant milestone for the company, which was originally named SmartWage and was founded in 2019 before rebranding in 2022.
The funding round was led by Next176, a venture capital firm supported by Old Mutual. Tramayne Monaghan, chief venture officer at Next176, expressed excitement about the investment in Jem HR.
The funding will be used to propel Jem HR's growth and enhance its product development efforts. The new capital will allow Jem HR to extend its reach beyond Southern Africa, expand their team, and improve their all-in-one platform. The investment will also enable Jem HR to introduce new products aimed at enhancing the financial well-being of deskless employees.
Jem HR delivers essential services to employees who may not have access to conventional digital communication platforms. The platform allows companies to communicate with employees without email access, distribute payslips, manage leave requests, and offer financial wellness products. By capitalizing on the widespread use of WhatsApp, Jem HR seeks to bridge communication gaps and continue to cater to the needs of frontline and deskless workers, a segment often underserved in the HR tech sector.
Simon Ellis, co-founder and CEO of Jem HR, emphasized the importance of the funding for achieving the company's mission. "We are thrilled to have the support of Next176 as we scale our innovative solutions across Africa and beyond," Ellis said.
In addition to equity investments, the funding round also included a ZAR30 million (US$1.65 million) private debt facility. This debt facility is designed to scale alongside the platform's usage, enabling Jem HR to introduce new products and services as demand grows.
While explicit detailed expansion plans were not directly available, the context suggests that the funding round aims to accelerate Jem HR's growth trajectory by improving the platform and broadening client adoption, consistent with typical milestones after pre-Series A funding for a tech startup in an emerging market like South Africa.
The investment will no doubt help Jem HR achieve its ambitious vision and solidify its position as a leader in HR tech solutions for deskless workers in Africa and beyond.
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