South African startup Jem HR, a WhatsApp-based human resources and employee benefits platform, has successfully closed a ZAR60 million (US$3.3 million) pre-Series A funding round.
The round included equity funding led by Next176, a venture capital firm backed by financial services giant Old Mutual, and a ZAR30 million (US$1.65 million) private debt facility. This capital infusion is set to accelerate Jem HR’s growth and product development initiatives.
Founded in 2019 as SmartWage, Jem HR initially focused on providing employees with instant access to earned wages. Following a rebranding in 2022, the company broadened its mission to digitize various HR processes for enterprises. The platform now enables companies to communicate with employees who may not have email access, distribute payslips, manage leave requests, and offer access to financial wellness products—all through the widely-used WhatsApp messaging service.
Simon Ellis, co-founder and CEO of Jem HR, emphasized the significance of the funding:
“This funding is a pivotal step in enabling us to achieve our dual mission: to make managing and connecting frontline employees effortless while providing them with money-saving financial benefits.”
Ellis highlighted the strong demand for their platform, driven by the specific challenges faced by deskless workers, including lower wages, transportation issues, and safety concerns. He noted that the new funding will allow Jem HR to expand beyond Southern Africa, grow their team, and enhance their all-in-one platform to tackle HR, communication, and employee benefit challenges at scale.
The ZAR30 million debt facility is designed to scale with the platform’s usage, enabling Jem HR to introduce new products aimed at improving the financial well-being of deskless employees. These offerings will include savings tools, low-cost insurance options, credit score support, a financial wellness helpline, and value-added services such as airtime and data bundles.
Tramayne Monaghan, chief venture officer at Next176, expressed enthusiasm about the investment:
“We invest in businesses that deliver sustainable, disruptive growth, and Jem is a prime example. Simon, Caroline, and the entire Jem team have built a platform that is not only transformative for businesses but also deeply impactful for employees. We are excited to support their bold vision as they scale their innovative solutions across Africa and beyond.”
This investment marks a significant milestone for Jem HR as it continues to address the needs of frontline and deskless workers, a segment often underserved in the HR tech landscape. By leveraging the ubiquity of WhatsApp, Jem HR aims to bridge communication gaps and provide essential services to employees who may lack access to traditional digital communication channels.
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