Human resources tech platform Jem HR has raised R60m in new funding to scale up its operations beyond Southern Africa.
On Tuesday, the company said it had closed a pre-Series A funding round. The capital raise included equity funding led by Old Mutual subsidiary NEXT176 and a R30m private debt facility.
Jem HR is a specialist human resources firm offering WhatsApp-based HR and employee benefit platforms for deskless workers.
The platform has more than 150,000 users across more than 150 companies, digitising payroll, leave management, time sheets, and earned wage access.
Its corporate clients include Securitas, Edgars and KFC.
Jem HR has previously raised more than $3.4m from backers including E4E, LoftyInc Capital, Creator Ventures, Musha Ventures, Launch Africa, Harambeans Prosperity Fund and other individual investors involved in HR, fintech, and technology.
“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,” said co-founder and CEO Simon Ellis.
“We’re seeing strong demand for our platform, driven by the need to address the challenges faced by deskless workers, including low wages, unreliable transport and safety concerns.”
Ellis said the latest funding would help with its expansion drive beyond Southern Africa, grow the team, and enhance the platform’s ability to tackle HR, communication, and employee benefit challenges at scale.
The R30m debt facility, which scales with usage, will enable Jem HR to launch new products for deskless employees, including a savings tool, low-cost insurance, credit score support, a financial wellness helpline, and value-added services such as airtime and data bundles.
According to a recent report by the company, deskless workers represent 75% of SA’s workforce, filling roles in a variety of sectors including food, hygiene, security, logistics and retail.
Jem HR’s latest funding round adds to the growing list of SA tech based companies that have received further backing in recent months.
Earlier this month local agritech start-up Khula raised R126m from existing funders, and is now looking to external backers to raise more capital.
A month earlier, CubeSpace, a satellite component manufacturer started at Stellenbosch University, raised R55m to expand its business, in a funding round led by asset manager Futuregrowth.
In February, former SAA boss Vuyani Jarana secured more than R400m for Ilitha Telecommunications, his telecom venture that aims to connect 500,000 low-income homes to the internet.
In January, Naked Insurance, which uses AI to offer cover for cars, homes and other valuables, said it had raised $38m in a Series B extension funding round.
The SA Venture Capital and Private Equity Association (Savca) released a report in July 2024 that shows capital flows to SA start-ups in 2023 reached R3.28bn, driven by investment into local technology businesses.
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