The round was led by Breega and included participation from investors such as Partech, Orange Ventures, and Outlierz, among others. Raisers Partners acted as financial advisers for the deal. 

This funding will enable Socium to strengthen its foothold as a pioneer in the region’s HR-tech market, where demand for tailored solutions is on the rise.

Founded in 2021 by Samba Lo and Serigne Seye, Socium is targeting the 21 countries in Francophone Africa, leveraging shared economic frameworks, regulations, and currency to deliver region-specific HR solutions. 

Lo highlighted the untapped potential in this market, explaining that the startup’s focus on the region gives it a distinct advantage.

Paris VC Firm Breega Launches $75M Africa Fund to Back Early-Stage Startups

Socium’s platform addresses critical HR needs, including recruitment, payroll, and performance management. Initially conceived as a recruitment website, the startup evolved into a comprehensive HR solution after recognising the broader needs of its clients. 

The platform automates routine tasks such as payroll calculations and CV scoring, freeing HR managers to focus on employee engagement and development.

In 2023, Socium launched a payroll engine designed to handle the complexities of payroll management across multiple countries in the region. The solution enables rapid deployment in new markets—within two weeks—offering a faster alternative to global HR platforms. 

Added to this, it incorporates artificial intelligence to enhance recruitment processes, such as generating job descriptions and matching candidates to roles efficiently.

“We’re committed to helping HR teams streamline daily operations so they can focus on their most important asset: people,” said Lo. 

The startup’s tools also aim to support businesses with tax and regulatory compliance by integrating with tax agencies to automate filings.

A Growing Client Base and Future Plans

Socium has already garnered over 100 active clients spanning 15 countries and 10 industries. The company’s ability to address local HR challenges has positioned it as a key player in Africa’s burgeoning HR-tech landscape. Lo and Seye, who met while studying at École Polytechnique, attribute their success to their shared vision and entrepreneurial drive.

The startup’s journey reflects Lo’s personal mission to contribute to Africa’s development. After a career in data science and investment banking, Lo joined a French SaaS company where he discovered his passion for entrepreneurship. 

Reflecting on this transition, he said, “During the COVID-19 pandemic, I realised I wanted to create something meaningful for my community, and HR technology felt like the right path.”

A Competitive Market

Socium is among a growing number of HR-tech startups gaining traction in Africa. For instance, Kenya’s WorkPay recently raised $5 million in a Series A round led by Visa.

However, Socium’s unique focus on Francophone Africa gives it a strategic edge in a relatively underserved market.

With the new funding, Socium aims to expand its reach, enhance its product offerings, and become a leader in HR-tech across Francophone Africa.

The fund will drive the company’s expansion, particularly in Asia, where it plans to open a new office in Hangzhou, China; a known hub for e-commerce and payment service providers (PSSPs), home to major companies like Alibaba. 

Klasha also aims to strengthen its B2B payment solutions, offering businesses the ability to send and receive payments across Africa and Asia more efficiently.

Existing investors in the round included Expert Dojo, Alumni Ventures, Practical VC, Breega, My Asia VC, Resilience17, and Magic Fund. Brian Mac Mahon, founder and CEO of Expert Dojo, said: “We’re excited to re-invest in Klasha at a time when they’re rapidly scaling into B2B payments between emerging markets and Asia, providing more seamless, faster payment rails to their global merchants.”

Klasha’s platform supports payout and collection APIs, enabling businesses to pay partners in local African currencies such as NGN, KES, and UGX, while paying in USD, EUR, or CNY. 

This eliminates the challenges of currency exchange, allowing businesses to process payments swiftly to bank accounts or mobile wallets.

Again, Klasha’s Payment Links service allows businesses without e-commerce stores to collect payments online from African customers, receiving payouts in their chosen currency without needing a website or complex technical setup. 

Klasha Wire offers another key solution for businesses, enabling them to pay global suppliers from emerging markets in local currencies, with no hidden fees or monthly charges. Payments are typically settled within one to three business days, providing a reliable solution for international transactions.

Klasha is focused on ensuring high security for all transactions, with compliance to PCI-DSS and ISO-270001 standards. Its platform includes advanced Know Your Customer (KYC) verification, two-factor authentication, and regular audits to maintain transparency and protect users’ data. 

The company is also regulated in multiple jurisdictions, further strengthening its position in the global payments industry.

In addition to its Asian expansion, Klasha has obtained a Money Services Business (MSB) license in the United States, allowing it to operate as a currency exchange and money transmitter. This strengthens Klasha’s presence as a global payment facilitator, expanding its reach beyond Africa and Asia.

Jess Anuna, CEO of Klasha, commented on the latest developments: “We’re thrilled to announce our latest funding round and investment into the Asian market. We already work with merchants at scale in the region and are looking forward to expanding our capabilities there, fostering more seamless B2B payments between the two continents. With this investment and the addition of Justin Fan, we are confident that we can tap into the immense B2B payment opportunities in the Asian market and drive sustainable growth for the company.”

Currently, Klasha serves over 10,000 merchants and has processed more than 140 million transactions across emerging markets.

The company’s growth is supported by partnerships with major Asian PSSPs such as Coda Pay, Fomo Pay, and Easy Transfer, and it continues to deliver competitive foreign exchange rates and faster transaction times for businesses globally.

The firm has already secured commitments for approximately 70% of this capital, enhancing its expansion drive beyond Europe.

Breega, known for its founder-centric approach, has established a strong presence in Europe with a portfolio of over 100 startups across 15 countries and $700 million in assets under management. 

The new fund, titled “Africa Seed I,” is Breega’s first move outside of Europe, coinciding with the opening of new offices in Lagos, Nigeria and Cape Town, South Africa. 

These offices will complement Breega’s existing locations in Paris, London, and Barcelona, enhancing its reach across the EMEA region.

Breega’s decision to focus on Africa is linked to the continent’s growing tech industry, which has seen venture capital investments grow from less than a billion dollars annually to a record $6 billion. 

The firm plans to invest between $100,000 and $2 million in startups across key African markets such as Nigeria, Egypt, South Africa, and Kenya, as well as Francophone countries including Morocco, Senegal, Ivory Coast, Cameroon, and the Democratic Republic of Congo. 

The new fund is backed by institutions including Bpifrance and the Dutch entrepreneurial development bank FMO. 

Leading the Africa fund are Melvyn Lubega and Tosin Faniro-Dada, both bringing commendable entrepreneurial and operational experience. Lubega co-founded the edtech unicorn Go1, while Faniro-Dada served as the CEO of Endeavor Nigeria.

Breega’s investment strategy focuses on high-growth sectors such as agritech, edtech, healthtech, fintech, logistics, mobility, energy, and climate tech. The firm reiterates addressing the core needs of Africa’s rapidly growing population, which is expected to reach 2.5 billion by 2050.

The Africa Seed I fund aims to make at least 40 investments, with Breega already backing nine startups, including Numida, Hohm Energy, Socium, Klasha, Kwara, Coachbit, and Sava. 

Breega’s hands-on approach includes an innovative team supporting portfolio companies in areas such as go-to-market strategy, talent management, governance, branding, and communications.

The company’s expansion into Africa is driven by the recognition of the continent’s potential and the desire to replicate its European success. Beyond capital, Breega will offer support and international exposure to help African startups scale and thrive.