Kenyan Fintech Jahazii Raises $400,000 in Pre-seed Funding to Formalise Informal Workforce in Africa

Kenyan fintech Jahazii has raised $400,000 in pre-seed funding to help many workers in Africa who don’t have formal jobs. Jahazii wants to make work better and fairer for millions of people by creating a “workforce operating system for Africa.” This system will help formalise the informal workforce in Africa and give workers better access to financial services.

Jahazii is a company started in 2023 by Sven Grospitsch, Vaidehi Tembhekar, and Martin Gitehi. It serves workers mostly in Kenya’s factories and farms, places where many people work without contracts or official pay. Jahazii raised $400,000 in pre-seed funding from several investors like Antler East Africa, DEG Impulse, Jozi Angels, and Innovest Afrika. This money will help Jahazii grow its software that combines HR management, payroll, and financial tools for employers with many workers.

One special thing about Jahazii is that it helps workers access some of their earned wages before payday. This means workers don’t have to wait weeks to get some of the money they already earned. Jahazii raises $400,000 in pre-seed funding to speed up this service and make it available to more companies and workers.

Kenyan Fintech Jahazii Raises $400,000 in Pre-seed Funding

Most jobs in Sub-Saharan Africa are informal. That means over 80% of workers don’t have contracts or official papers showing how much they earn. Without this, it is hard for them to borrow money, save, or get insurance from banks. This keeps many people stuck with no financial support. Jahazii’s goal is to fix this by making it easier for workers and employers to keep records and access fair financial products.

Jahazii’s CEO Sven Grospitsch says informal work is the biggest problem stopping Africa’s economy from growing faster. He explains that without good systems, workers miss out on chances to save money or get loans in safe ways. Also, companies find it hard to grow when they don’t have proper data on their workers. Jahazii exists to change this by formalising informal work and helping workers get fair financial access.

Unlike usual digital lenders who give loans directly to people but often charge high interest and push them to repay fast, Jahazii works differently. Jahazii partners with employers and includes financial products like wage advances, savings, and insurance directly into the payroll system. This way, workers get support without the risk of debt traps.

Jahazii raises $400,000 in pre-seed funding to improve this system and work with more employers. This will help workers get financial help in a safer and fairer way, without falling into problems caused by some loan apps.

Other companies like Workpay, Seamless HR, Sage, and PaidHR also help with digital HR, payroll, and wage access in Africa. But Jahazii focuses on workers in factories and farms, who often get ignored in these digital solutions. Jahazii wants to support the millions of workers in Kenya’s manufacturing and agriculture sectors.

This new funding will help Jahazii grow responsibly and give workers tools to manage their money better. Jahazii’s plan to formalise informal workforce in Africa is a big step in helping many people lift themselves up and create a stronger economy.

In summary, Kenyan fintech Jahazii raises $400,000 in pre-seed funding to build a system that makes informal work more formal and supports workers with fair financial services. By working with employers, Jahazii helps workers get their earned wages earlier, save money, and protect themselves without risky loans. This is an important step to make work fairer and help businesses grow in Africa.

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