Expansion Funding of ZAR60 Million Granted to Jem HR for Growing WhatsApp-Centric Workforce Management System for Off-Office Employees
South African Startup Jem HR Secures Funding to Expand HR Platform for Frontline Workers
South African startup Jem HR, a WhatsApp-based platform for human resources and employee benefits, has secured ZAR60 million (US$3.3 million) in pre-Series A funding. The investment will support Jem HR's ambitious vision to scale their innovative solutions across Africa and beyond.
The funding round included equity investments led by Next176, a venture capital firm backed by Old Mutual, and a ZAR30 million (US$1.65 million) private debt facility.
Founded in 2019 as SmartWage, Jem HR initially provided employees with immediate access to earned wages. After rebranding in 2022, the company expanded its mission to digitize various HR processes for businesses.
Jem HR's growth strategy post-funding is centered on leveraging WhatsApp to expand its accessible HR and payroll platform for frontline workers, deepen financial wellness integration, and scale across Africa.
Simon Ellis, co-founder and CEO of Jem HR, emphasized the importance of the funding for achieving the company's dual mission. Ellis highlighted the significant demand for their platform due to the challenges faced by deskless workers, such as low wages, transportation issues, and safety concerns.
The new funding will enable Jem HR to extend its reach beyond Southern Africa, expand their team, and improve their all-in-one platform to address HR, communication, and employee benefit challenges on a larger scale.
With the ZAR30 million debt facility, Jem HR aims to scale alongside the platform's usage, empowering the company to introduce new products aimed at enhancing the financial well-being of deskless employees. These new offerings will include savings tools, low-cost insurance, credit score support, a financial wellness helpline, and additional services like airtime and data bundles.
Jem HR seeks to bridge communication gaps by capitalizing on the widespread use of WhatsApp. The platform now allows companies to communicate with employees without email access, distribute payslips, manage leave requests, and offer financial wellness products via WhatsApp.
Tramayne Monaghan, chief venture officer at Next176, expressed excitement about the investment in Jem HR. Monaghan noted that Next176 invests in businesses that foster sustainable, disruptive growth, and Jem HR is a prime example.
While explicit detailed expansion geographies were not disclosed, the emphasis on African frontline workers suggests continued scaling within South Africa and potentially other African markets. No information was found on mergers, acquisitions, or partnerships directly linked to Jem HR post-funding, though the company is cited among notable technology firms involved in African HR/payroll technology.
In summary, Jem HR’s growth strategy post-ZAR60 million pre-Series A funding is centered on leveraging WhatsApp to expand its accessible HR and payroll platform for frontline workers, deepen financial wellness integration, and scale across Africa.
Venture capital firm Next176, backed by Old Mutual, has financed South African startup Jem HR, a technology company, with ZAR60 million (US$3.3 million) in pre-Series A funding to support expanding their WhatsApp-based HR platform for frontline workers across Africa and beyond. Jem HR's growth strategy post-funding involves leveraging WhatsApp to expand their accessible HR and payroll platform, deepen financial wellness integration, and scale across Africa, offering new products focused on enhancing the financial well-being of deskless employees, such as savings tools, low-cost insurance, credit score support, a financial wellness helpline, and additional services like airtime and data bundles.
