KARACHI: Pakistani HR tech startup Paismo announced on Tuesday that it has raised $1.3 million in a seed round, which was led by Indus Valley Capital and also included participation from Singapore’s Antler and Jedar Capital, with headquarters in New York.
In his communication to business registrarPaismo, which offers its software-as-a-service (SaaS) product on subscriptions, said the round was oversubscribed and the funds would be used to hire resources (expand the team) and maintain operating costs.
The seed round brings total funding to date to $1.5 million after the startup also raised $200,000 in November 2022, according to data available on the Crunchbase website.
“Paismo’s SaaS offering is designed to deliver solutions internationally while creating local impact,” it said in its press release.
“In Pakistan, Paismo is focusing on key initiatives by increasing employee bank account openings and facilitating access to health benefits. It is Pakistan’s first modern HR, payroll and benefits technology provider aiming to go global, including in markets like MENA and Southeast Asia.”
Founded in November by two University of Pennsylvania alumni, Rebecka Zavaleta and Usama Mahmud, the startup aims to use technology to streamline HR processes and address inefficiency challenges. Among its functions are the integration of attendance / time sheets to the payroll and making the payroll of employees accessible through the mobile application. It also partnered with Adamjee Insurance to enable localized benefits and MCB Islamic Bank for the inclusion of financial incentives.
“We have reviewed hundreds of payrolls from different companies and are creating the most streamlined and customizable product where setup is done in just days rather than months within the industry,” said Zavaleta, who is now based in Lahore. business registrar via message
Zavaleta has a decade of product leadership experience in California, with a track record of global product launches with tech giants like Google, Tiktok, and Meta (formerly known as Facebook). Mahmud worked as a government technical adviser on education reforms in Punjab, Pakistan’s most populous province, helping raise more than $50 million in 2020-21.
“The top HR and payroll challenges facing businesses are often similar, regardless of location,” Mahmud said. business registrar when asked to elaborate on the ‘made in Pakistan, for the world’ vision.
“We are building a product with a capital efficient business model that can be scaled globally, while ensuring local benefit integrations. I believe that Pakistan needs such technological products that serve the markets around the world.”
About its current users, the company said they belong to “different verticals and business sizes”.
“Our goal is to have an annual recurring revenue of more than $1 million by the end of 2024,” the company said. business registrar when asked to share projections.
Paismo’s announcement comes at a difficult period for Pakistan’s economy and its start-ups which saw the lowest level of funding in three years during the quarter ending June 2023. In the three-month period, start-ups in Pakistan drew a meager $5.2 million, a -yoy decline and 77.5% drop on a quarterly basis.
The drop in funding also coincides with the huge political and economic uncertainty in the country with the $3 billion Stand-By Agreement with the International Monetary Fund (IMF) only providing a few months of respite.
However, institutional investors remained enthusiastic about Paismo’s growth prospects.
Aatif Awan, founder of Indus Valley Capital, said he was excited by the opportunity to create a product that solves a big problem for employers and employees in emerging markets.
Sherif Nessim, founder of Jedar Capital, said there remains a great need for HR services in emerging markets where global players lack an understanding of local culture.
“It was clear that this should be homegrown,” Nessim said in the statement. “I was glad I had the opportunity to connect with the Paismo founders at the early ideation stage and saw their commitment to building a product that can differentiate them both in emerging markets and globally.”
Markus Bruderer, partner at Antler, said Paismo’s product offerings and focus align with the changing demands of the modern workforce.
Business Copyright Registrar, 2023