Jem HR, a South African startup, announced on Tuesday that it has raised $3.3 million in pre-Series A funding. This investment will help expand its WhatsApp-based human resources and employee benefits platform across Africa.
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Enhancing WhatsApp-based HR solutions
Jem HR’s platform is designed to transform the lives of frontline employees by simplifying workforce management for employers. It currently serves over 150,000 employees in the security, mining, retail, manufacturing, and logistics industries. The platform allows employees without email access to receive payslips, request leave, and access financial wellness products via WhatsApp.
Simon Ellis, co-founder and CEO of Jem HR, noted, “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”.
The funding round includes equity funding led by Old Mutual’s venture arm, Next176, and a ZAR30 million (approximately $1.65 million) private debt facility. This debt facility will support the launch of new offerings aimed at improving the lives of deskless employees, including savings tools, affordable insurance options, credit score assistance, a financial wellness helpline, and access to essentials like airtime and data bundles.
Jem HR eyes expansion and platform upgrade.
Jem HR plans to use the new funding to expand beyond Southern Africa, grow its team, and enhance its all-in-one platform to tackle HR, communication, and employee benefit challenges at scale.
Tramayne Monaghan, Chief Venture Officer at Next176, expressed enthusiasm for the investment, stating, “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”.
Caroline van der Merwe, co-founder and Chief Product Officer of Jem HR, highlighted the platform’s effectiveness, noting that it delivers industry-leading registration rates, with some clients exceeding 95 per cent adoption. This success underscores Jem’s ability to effectively connect and engage with the workforce, addressing long-standing challenges deskless workers face.