Investment of $7.1 million inseed capital for Cadana's growth, focusing on broadening payroll services in burgeoning global markets.
Cadana, a pioneering company in payroll operations for global workforces, has made significant strides since its inception in January 2021. The company, which initially began as an earned wage access (EWA) platform targeting specific African markets, has since expanded its scope to offer a comprehensive suite of global payroll software and services to businesses in emerging markets.
Before Cadana, workers in emerging markets often had to wait about seven days to receive their payments and incurred significant remittance fees. However, Cadana's innovative platform allows these workers to integrate payments and payroll management into their existing systems, providing a seamless and cost-effective solution.
The company has saved workers in emerging markets over $2.5 million in fees so far. In addition, Cadana's revenue, generated from tiered pricing and fees charged to businesses per contract or employee paid on the platform, increased 11-fold over the same period.
Cadana's latest funding round, a seed round, closed this year and was led by Costanoa Ventures, with participation from Better Tomorrow Ventures and 500 Global. The company has secured a total of $7.4 million in funding since its inception.
The company's team of legal experts possess deep knowledge of local labor laws across various regions, ensuring compliance and smooth operations. Cadana claims to have achieved profitability last year and plans to use the latest funds to expand its team, accelerate product development, and scale into new markets.
Cadana's customer base has tripled in the past year, though specific clientele was not disclosed. The company offers a white-label solution, mid-tier options for custom components, and top-tier solutions with APIs for tailored solutions.
Cadana enables businesses to compensate workers in over 32 emerging markets, including Brazil, Ghana, Nigeria, Pakistan, and the UAE. The company supports remote work businesses in the U.S. and U.K., employing thousands or tens of thousands of workers.
Moreover, Cadana offers over eight flexible payment options for workers to withdraw funds, such as mobile money, bank accounts, and cards. To date, the company has processed over $150 million in transactions for its clients.
The global freelance market, valued at $1.3 trillion, is supported by over 200 million knowledge workers. Cadana faces competition from companies like RemotePass, Deel, and Remote, which are expanding into emerging markets. However, Amy Cheetham, partner at Costanoa Ventures, stated that Cadana has built a purpose-built suite of white-label products and APIs for emerging markets to power the next-generation pay experience for millions of workers.
Co-founders Albert Owusu-Asare and Ameer Shujjah are both immigrants to the U.S. who met in college as computer science and physics majors. Their personal experiences and shared vision have driven the success of Cadana, providing a much-needed solution for workers in emerging markets and remote businesses worldwide.
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