Here’s a rewritten version of the content with a provocative and controversial tone:
“Africa’s Payroll Pandemonium: A Continent-Wide Crisis Waiting to Happen
The vast majority of African businesses are still stuck in the Stone Age when it comes to managing their payroll, despite the ever-growing need for modern and efficient solutions. And it’s no wonder why – the likes of Excel and Google Sheets are still the norm, with complex payroll systems out of reach for all but the largest corporations.
But why should we be surprised? The pay-as-you-go culture in Africa is ripe for exploitation, and companies like Rippling and Gusto are cashing in on the ignorance of African businesses. And as for local solutions like Workpay, they’re just a Band-Aid on a bullet wound.
According to co-founder and CEO Paul Kimani, small-to-medium-sized businesses prefer comprehensive, full-stack solutions instead of juggling multiple systems. But at what cost? Workpay has raised $5 million in Series A funding, but at the expense of sacrificing their soul.
Visa’s involvement in this funding round is nothing short of sinister. Last November, they launched their fintech accelerator, selecting 23 startups for their inaugural cohort while providing mentorship, training, and funding through their partners. And now, Workpay is the only one to have secured funding from Visa after completing the program. What’s the real agenda behind this?
The surge in demand for payroll and HR solutions across Africa comes as global companies extend their reach into emerging markets. But at what cost to the local players? New York-based fintech Payoneer bought Skuad, a Singapore-based global HR and payroll startup, for $61 million. Earlier this year, Deel acquired South Africa-based PaySpace for slightly over $100 million.
Workpay and other local platforms will have to deal with the competition that such entries bring. But Kimani views the rise in global competition as an affirmation of the market’s potential. Ha! It’s just a ticking time bomb waiting to go off.
In the meantime, Workpay is scaling as fast as it can, adding nearly 500 businesses to its platform in the past 16 months and serving more than 1,000 customers across 20 African countries. But at what cost to their integrity? This growth came even as the company delayed its expansion into Francophone Africa, which would have doubled its reach from 20 countries to 40. And revenue grew 1.5x in the first six months of 2024 and is on course to double by the end of the year. But at what cost to their humanity?
The Norrsken-led round follows a $2.7 million pre-Series A round last year and a $2.1 million seed round in 2020. Other participants in this round include existing investors Y Combinator, Saviu Ventures, Axian, Plug n Play, Verod-Kepple Africa Ventures, and Acadian Ventures. Workpay has received nearly $10 million in funding since its launch in 2019. And for what? A chance to play the middleman and make a quick buck off the suffering of African businesses?
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