After raising $9 million in a Series A extension in late 2024, Nigerian HR SaaS company SeamlessHR reportedly initiated informal talks with competitor PaidHR about a potential acquisition, according to multiple sources. However, these discussions never progressed to a formal offer or agreement.
Sources close to the matter revealed that SeamlessHR approached PaidHR in the fourth quarter of 2024, seeking to explore consolidation in Nigeria’s competitive HR-tech market. One source noted that no formal indication of interest (IOI) was presented, as the talks remained at an informal stage. PaidHR, focusing on its growth trajectory, declined to pursue the acquisition opportunity.
Founded in 2020, PaidHR has rapidly gained traction, providing payroll and HR services to over 200 Nigerian businesses, including notable names like Flutterwave, Oando, and Mavin Group. In 2023, the company handled ₦11 billion ($77 million) in client salaries, up from ₦2.7 billion ($18.5 million) in 2022. A key driver of its growth has been its cross-border payroll technology, which allows companies to pay employees in local currencies across multiple countries.
The cross-border payroll system was reportedly a significant reason SeamlessHR sought the acquisition. The feature could have complemented SeamlessHR’s suite of services, which includes HR management, payroll, recruitment, and analytics.
Despite the missed opportunity, industry experts believe the Nigerian HR-tech space is ripe for consolidation. With over 20 companies competing in a fragmented market, some argue that fewer, larger companies could provide better services. “The ecosystem would benefit from fewer players with greater scale and higher-quality offerings,” said the CEO of an HR-SaaS startup who requested anonymity according to TechCabal.
However, others caution that many HR-tech companies in sub-Saharan Africa are still in early stages of development, which may make consolidation premature. For example, Deel’s acquisition of South Africa’s PaySpace was successful partly because of the company’s decades-long experience and product maturity.
Both SeamlessHR and PaidHR declined to comment on the stalled talks. For now, PaidHR appears focused on its independent growth, while SeamlessHR continues to navigate a competitive landscape in the HR-tech market.
