NAIROBI, Kenya, Sep 27 – Kenyan local startup ElevateHR Africa has announced plans to raise Sh40 million from local investors.
This comes after the firm hosted its Pre-Seed Investor Gala, where HR professionals and C-suite executives united as local angel investors.
Previously, it raised of $100,000 from ‘From Here Ventures’ a local venture capital firm.
Speaking during the gala dinner ElevateHR Founder and Chairman Mark Karake said the funds will be used to help the company increase its customer base and continue to grow its product portfolio.
“We also want to hire key staff and increase our sales and marketing activities in a bid to grow our customer base to a triple digit,” Karake said.
Local investors can invest a minimum of Sh200, 000 with a 14 percent interest rate per year compounded on principal.
“Our team has a combined over 30 years experience in startups, SaaS sales and engineering, they are experienced industry leaders of high quality and will deliver on the promises we have made today,” He added.
Historically, local startups have overwhelmingly relied on foreign investors, with a staggering 99% foreign funding rate.
ElevateHR Africa is on a mission to revolutionize this narrative, fostering a new era of local entrepreneurship and innovation.
The move comes amidst a decline in startup funding, as the sector begins to feel the bite from the global economic climate.
Latest data from Disrupt Africa, shows that African tech startups raised US$649,303,000 between January 1 and March 31 this year, down 57.2 percent of the total from the corresponding period in 2022.
In the first half of 2023, African tech startups raised US$1.19 billion, down by more than half of the total from the corresponding period in 2022.
“Local investing not only provides additional opportunities and benefits to new entrepreneurs, it also invigorates communities, instills trust in local businesses, and increases customer loyalty. Because your investors are local, they have an interest in your business succeeding because they’re economically and emotionally tied to it. From an economic standpoint, your success also belongs to your investors, making them more likely not only to frequent your business, but encourage others to do the same,” said Kennedy Nyabwala Chief Executive Officer, ElevateHR Africa.
The firm has picked Lokal Capital as its investment managers.
“Local investors have historically been overlooked in funding rounds due to a lack of understanding about startup investment dynamics and associated risks. With the Pre-Seed Investor Gala, we’re not only transforming startup funding but also strengthening our ecosystem for HR professionals and entrepreneurs alike,” Nyabwala explained.
ElevateHR Africa is a cloud-based HR software platform, offering comprehensive solutions for payroll management, leave management, employee self-service, salary advances, and performance management.
Their commitment to empowering businesses with streamlined HR processes remains unwavering.
Additionally, ElevateHR Africa has built an Innovation Driven HR Community, boasting 800 active members, which serves as a hub for HR professionals to foster professional development and networking opportunities.
ElevateHR Africa remains dedicated to understanding and addressing the unique needs of its community members, ultimately enhancing their careers.
