The investment will help the company expand its operations across Africa and develop new financial services offerings.

Workpay, formerly known as TozzaPlus, provides cloud-based HR management and payroll solutions for small and medium-sized businesses in Africa.

Its tools help businesses save time and money by eliminating inefficiencies associated with cash payments and ghost workers.

The latest funding round follows a previous $2.7 million pre-Series A raise earlier this year.

Other investors participating in the Series A include Visa, Y Combinator, Saviu Ventures, Axian, Plug n Play, Verod-Kepple Africa Ventures, and Acadian Ventures.

“Our goal is to become the go-to solution for employers and employees in managing HR, payroll, and work-related benefits,” said Paul Kimani, CEO of Workpay.

“This raise will support Workpay to reach profitability, a huge milestone for our company.”

Ngetha Waithaka, general partner at Norrsken22, expressed confidence in Workpay’s potential to revolutionize HR and payroll management in Africa.

“Africa boasts one of the largest working-age populations in the world, and they remain grossly underserved by existing HR and payroll tools,” Waithaka said.

“With the addition of integrated financial services, Workpay’s potential for growth is immense.”