Investment of $7.1 million in seed funding for Cadana to extend payroll services in developing economies
Cadana Raises $7.1 Million to Revolutionize Payroll Services in Emerging Markets
Cadana, a fintech startup, has secured $7.1 million in its Series A funding round, led by Costanoa Ventures. This investment will enable the company to expand its team, accelerate product development, and scale into new markets, particularly in Africa, Asia, and Latin America.
The mission of Cadana is to provide the best possible pay experience to workers in emerging markets. By offering a streamlined and efficient remittance service, Cadana aims to save these workers millions in fees and unlock global job opportunities for them. So far, the company has saved over $2.5 million in fees for workers in these regions.
Cadana's service is designed to simplify the process for workers in these regions to access global job opportunities. The company currently supports businesses in compensating workers in over 32 emerging markets, including Brazil, Ghana, Nigeria, Pakistan, and the UAE.
The global freelance market, valued at $1.3 trillion and supported by over 200 million knowledge workers, presents a vast potential for Cadana. The startup offers a white-label solution, a mid-tier option for custom components, and a top tier for tailored solutions, catering to various businesses in this sector.
Co-founders Albert Owusu-Asare and Ameer Shujjah, both immigrants to the U.S. who met in college as computer science and physics majors, founded Cadana in January 2021. Since then, the company has secured a total of $7.4 million in funding, including $325,000 in pre-seed capital.
Cadana's team of legal experts possess deep knowledge of local labor laws across various regions, ensuring compliance and smooth payroll operations. The startup facilitates payroll operations for talent marketplaces, staffing firms, and HR providers, and offers more than eight flexible payment options for workers, including mobile money, bank accounts, and cards.
Amy Cheetham, partner at Costanoa Ventures, considers Cadana as a solution addressing unique challenges faced by employees and employers in emerging markets. The company faces competition from companies like RemotePass and U.S. payroll giants Deel and Remote, which are expanding into emerging markets. However, Cadana emphasizes its unique advantage in streamlining and speeding up remittance for talent in these markets.
In the past year, Cadana's revenue, generated from tiered pricing and fees, increased 11-fold, and its customer base has tripled, though specific clientele was not disclosed. The most recent round also saw participation from Better Tomorrow Ventures and 500 Global.
With this latest funding, Cadana is poised to make a significant impact in the payroll sector, offering a solution tailored to the unique needs of workers in emerging markets.
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