South African startup Jem HR has secured ZAR60 million (approximately US$3.3 million) in pre-Series A funding to accelerate its expansion and enhance its WhatsApp-based human resources and employee benefits platform.
Founded in 2019 as SmartWage and rebranded as Jem HR in 2022, the company initially focused on providing employees with instant access to earned wages, offering financial flexibility to workers. Over time, Jem HR evolved into a comprehensive HR solution, streamlining labor-intensive processes for businesses and facilitating company-wide communication via WhatsApp. Employees without email access can now receive payslips, request leave, and utilize financial wellness products seamlessly through the platform.
The funding round was led by Old Mutual’s venture arm, Next176, and includes a ZAR30 million (US$1.65 million) private debt facility. The investment will drive Jem HR’s growth, expand its team, and enhance product development as the company scales beyond Southern Africa.
“This funding represents a crucial milestone in our journey to fulfill our dual mission: to simplify the management and connection of frontline employees while providing them with valuable financial benefits,” said Simon Ellis, co-founder and CEO of Jem HR. He highlighted the increasing demand for the platform, which addresses key challenges faced by deskless workers, including low wages, unreliable transport, and workplace safety concerns.
The ZAR30 million debt facility will support the launch of new offerings designed to improve the lives of deskless employees. These include savings tools, affordable insurance options, credit score assistance, a financial wellness helpline, and access to essentials like airtime and data bundles.
Tramayne Monaghan, Chief Venture Officer at Next176, expressed enthusiasm for 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 developed a platform that is not only transformative for businesses but also profoundly impactful for employees. We are excited to support their ambitious vision as they scale their innovative solutions across Africa and beyond.”
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