SOUTH AFRICA – Just days after raising US$20 million from Lendable, Finclusion Group has acquired HelloHR, a South African payroll software startup, in a move that will allow Finclusion Group provide holistic financial wellness products through employers, access to its wage-streaming, financial wellness and insurance products.
In a press statement, Finclusion Chief Executive Officer Timothy Nuy said the acquisition marks the start of a symbiotic partnership that enhances both companies’ individual product offerings.
“HelloHR will contribute to the Finclusion Group platform, strengthening all offerings through improved customer experience and increased customer retention rates. The relationship allows the Group to provide employers in SmartAdvance access to payroll services.”
Finclusion Group is enhancing financial inclusion in Africa by building transformative financial technology services focused on high-growth market segments, providing world-class customer experiences.
Finclusion Group’s current key focus areas are financial wellness, credit scoring and direct lending, operating through the brands Fractal Labs, smartadvance, niftycredit, niftycover, TrustGro and Click2Pay in South Africa, Eswatini, Kenya, Namibia and Tanzania.
Bernard Bravenboer, Founder of HelloHR said that the value provided by the combination of the infrastructure of payroll administration and employee benefits is typically only seen in large corporate organizations.
“This partnership democratizes access to financial wellness products and access to earned wages and can give a much-needed boost to the employee experience. We know that small and medium businesses are the future of South Africa, and this is where we can play our part.”
Accessible through a web application, the tool automates the payroll process including the necessary leave and tax adjustments, thus saving time and reducing the chance of human error.
In addition, the intuitive user interface provides a platform for administrators to relay all payroll-related information, with tailored user experiences designed specifically for each access level.
Global leaders such as Gusto and Zenefits have successfully achieved Unicorn Status on the back of building strong payroll and benefits businesses and in Africa, there is a huge opportunity as the space remains largely fragmented and underserviced.
HelloHR is well-positioned to become a leading wage-streaming distribution platform — as many of the employers on the continent are still under legacy payroll systems, making it hard for pure-play lending firms to offer tailored solutions.