The goal is to invest $20 million in early-stage, purpose-driven companies aiming to improve the wellbeing of young people in low- and middle-income countries across the continent.

Seedstars Capital is an alternative investment platform focused on supporting emerging fund managers as well as investing in technology companies in emerging and frontier markets. On the other hand, Fondation Botnar is a Swiss philanthropic foundation dedicated to improving the health and wellbeing of young people living in urban areas worldwide. The partnership reflects their shared commitment to fostering positive impact through strategic investment.

The mandate will target pre-seed to Series A companies in sectors such as health services, environmental sustainability, local food security, water and sanitation, waste management, digital technologies, quality education, access to employment, financial services, safe transportation, and affordable housing.

Seedstars Youth Wellbeing Ventures will act as a catalyst for additional capital into the continent and is expected to co-invest alongside like-minded investors. Investments will be made across Africa, with a strong focus on companies active in, or expanding to Tanzania, Ghana, Senegal, Morocco, and Egypt.

“Our partnership with Fondation Botnar will combine our strengths and resources to drive meaningful impact in emerging markets,” said Benjamin Langer, Partner at Seedstars Capital. “Together and with the added strength of our co-investor network, we will identify, invest and scale innovative companies with the potential to transform the lives of young people across our key markets.”

Antoine Veyrassat, Venture Philanthropy Lead at Fondation Botnar said, “Fondation Botnar is excited to join Seedstars in supporting companies that are making a difference. Our shared commitment to improving the health and wellbeing of young people aligns strongly with our investment strategy that takes a market-based approach to philanthropy in addition to our other philanthropic funding, especially as rapid urbanization and the increasing number of young people living in cities present both unique challenges and opportunities.”

The partnership between Seedstars and Fondation Botnar has already begun making strides in Africa, with one of their first joint investments being Chargel, a Senegal-based logistics technology company. 

The venture, which uses technology to streamline operations in the fragmented logistics sector, has successfully raised $2.5 million in seed funding. This move exemplifies the partners’ commitment to backing companies that contribute to youth wellbeing by improving the working conditions of young Senegalese truck drivers.

To further support the mandate and drive its mission, Cyrine Ben Fadhel is joining Seedstars as an Investment Manager. Bringing years of hands-on experience in venture capital, with past roles at Lateral Frontiers Capital and Global Ventures, Cyrine will act as the main point of contact for the mandate, and her knowledge will be instrumental in identifying and scaling innovative companies across the African continent.

Having raised an initial $2.1 million in seed funding, 2020, the current pre-Series A round boosts the total funding amount raised by Workpay. Investors in the current round were Launch Africa, Saviu Ventures, Acadian Ventures, Proparco, Fondation Botnar, Kara Ventures, Axian, P1 Ventures, and Norrsken. 

The YC-backed startup, W20 batch, was founded by the CEO, Paul Kimani and COO, Jackson Kungu. It plans to launch a payroll engine to serve customers in more markets, while it ensures efficient service provision and will release an API to enable firms such as accounting companies become payroll providers.

Workpay is a full-stack HR Payroll company that helps employees to manage and pay workers. The HR company offers tools that enable these clients pay salaries in local currencies across and outside Africa through partners, provides file taxes, and processes employee benefits. The tools also help employers track and manage employees’ time and attendance, as well as leave days.

The startup looks to include financial services in its offerings as it adds linkages to investment accounts, medical and asset insurance, and earned-wage access for employees attending to emergencies or bills.

Workpay affirms to experience a tremendous user base increase with revenue doubling annually, and has about $200 million in total payroll value being handled for customers every year.