Jem HR Gets $3.3M Boost to Expand Employee Benefits & HR Solutions

Jem Co-Founders: Caroline van der Merwe (CPO) and Simon Ellis (CEO)

South African startup Jem HR, a WhatsApp-based HR and employee benefits platform, has closed a ZAR60 million (US$3.3 million) pre-Series A funding round to accelerate its growth and product development.

Founded in 2019 as SmartWage, and rebranded in 2022, Jem started off by allowing companies to provide their employees with instant access to a percentage of their salaries and wages for work they have already done. 

It then expanded beyond that, giving enterprises a simple yet effective way to digitise their most time-consuming HR processes, helping them save time and money in order to focus on people. The product gives employees without email the ability to receive company-wide communication, access their payslips, request leave and get access to financial wellness products, all via WhatsApp.

The pre-Series A round includes equity funding led by Old Mutual subsidiary Next176, and a ZAR30 million (US$1.65 million) private debt facility. It will be utilised to accelerate the startup’s growth and product development.

“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 Simon Ellis, co-founder and CEO of Jem HR.

“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. The new funding will allow us to expand beyond Southern Africa, grow our team, and enhance our all-in-one platform to tackle HR, communication, and employee benefit challenges at scale.”

The ZAR30 million debt facility, which scales with usage, will enable Jem to launch new products that help improve the lives of deskless employees, including a savings tool, low-cost insurance, credit score support, a financial wellness helpline, and value-added services like airtime and data bundles.

“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,” said Tramayne Monaghan, chief venture officer at Next176.

Source: Disrupt Africa