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Home Funding

SmartWage raises $2 million to help South African businesses connect with their frontline employees.

Tech Gist Africa by Tech Gist Africa
04/12/2022
in Funding, Innovator of the Week, News - South Africa
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SmartWage South Africa

SmartWage South Africa

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SmartWage, a cutting-edge HR and communications technology company has raised $2 million in funding. 

Several famous investors helped raise the seed fund. Idris Bello, a founding partner of LoftyInc Capital, is one of these investors. 

Other investors include Naspers, Dimension Data, Investec, and Standard Bank, as well as angel investors from Creator Collective Capital, Penrose Capital, and Naspers, Dimension Data, Investec, and Standard Bank. 

Simon Ellis and Caroline van der Merwe founded SmartWage in May 2020. Existing software, such as SAGE, SimplePay, Workday, and Oracle, was built for those with email, smartphones, and computers, according to Van der Merwe, an expert in the field with nearly a decade of experience managing employer benefit programs.

This makes communicating and providing necessary HR services to frontline employees a real challenge. 

According to Simon Ellis, CEO of SmartWage, no solution effectively addresses the difficulty of interacting with a scattered workforce, preventing businesses from digitally transforming. “A communication chasm exists. Employees on the front lines do not believe they are a part of the company’s brand or promise. Payslips and leave are still printed on paper, and staff communication is done through notice boards or apps, both of which have high drop-off rates. Paper-based onboarding and disciplinary procedures still exist, costing firms time, money, and resources.” 

Companies that use frontline employees, such as retail, quick-service restaurants (QSR), manufacturing, construction, and hospitality, are among SmartWage’s clients. In the last year, they’ve increased their monthly active user base by 140%, and they currently work with brands including Edgars, KFC, Debonairs, Seattle Coffee, Truda, and Twizza. 

SmartWage’s ambition of revolutionizing Africa’s workforce through digital inclusion, particularly for frontline employees such as cashiers, restaurant staff, security officers, and healthcare workers, was supported by the oversubscribed seed fundraising round. 

SmartWage intends to use the funds to expand its product and technology team, as well as double down on solving employers’ most pressing issues.

 

Read more on Tech Gist Africa:

CredPal, a Nigerian startup, has raised $15 million in funding to expand its “buy now, pay later” model across Africa

Tushop, a Kenyan social commerce startup, has raised $3 million in a pre-seed funding round

Waspito, a Cameroonian e-health startup, has raised $2.7 million in seed funding

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Tech Gist Africa is a new media and technology news platform that focuses on the untold stories of innovative ideas closely connected to technology news from Africa.

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