PaidHR, a Nigerian HR startup that streamlines HR functions for businesses, is in discussions to raise a $1.5 million seed round. This follows its $500,000 raise in February 2023 from investors including Zrosk IML, Zedcrest Capital, Microtraction, Expert Dojo, and Resilience 17. The company, which processed ₦11 billion in salaries last year, is seeking new funding to expand its market presence and scale its latest offering—a cross-border payroll system. Founded in 2020, PaidHR’s new cross-border payroll supports 49 currencies, enabling companies with international employees to pay them in their local currencies. This solution also includes a digital wallet feature, allowing employees to convert their earnings into any preferred currency and spend directly. Ensuring regulatory compliance, PaidHR partners with licensed financial institutions for transactions, while generating revenue from transaction fees. According to CEO Seye Bandele, "We are building a cross-border solution tailored for employees, addressing the needs of our African clients." PaidHR’s broader suite of services includes HRIS, payroll management, compliance, performance tracking, and earned wage access (EWA), which allows employees to access a portion of their wages before payday. The cross-border payroll feature also offers a buffer for Nigerians—who represent 80% of PaidHR’s clients—by allowing them to convert their salaries into foreign currencies to hedge against the naira’s devaluation, which has dropped 70% since May 2023. As PaidHR continues to expand its product offerings, the startup, which serves over 200 businesses, aims to enter three new markets by Q2 of next year. It has processed over ₦20 billion in salaries so far in 2024, and the cross-border payroll solution is expected to significantly contribute to its revenue growth.
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