Nigerian startup, Raenest, wants to help Africans get hired and paid anywhere


Twitter made the announcement that it would be opening an office in Ghana in April of 2021. In 2019, Microsoft inaugurated its Africa Development Center in Lagos, which is located in Nigeria. Twitter and Microsoft aren't the only corporations that weren't created or headquartered in Africa but are hoping to tap into a burgeoning pool of tech expertise on the continent.

Amazon and Visa are two companies that have recently established hubs on the African continent. At the same time, smaller firms in Europe, Dubai, and the United States are competing for Africans with technical skills.

During his trip to Nigeria in June 2019, GitHub CEO Nat Friedman revealed that the West African nation has the developer community on GitHub that was expanding at the fastest rate.

We are quite impressed by the Nigerian developer community on GitHub, which is one of the communities with the quickest growth. According to him, over the past two to three years, Nigeria has maintained a growth rate on GitHub that is either as fast as or faster than the growth rate of any other country.

Facilitating the recruitment of African individuals around the world

The technology industry has seen the biggest growth over the past decade, and African engineers are increasingly being courted by global corporations as a result. This growth has coincided with an increase in mobile phone and Internet access across the continent.

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As a direct consequence of this, it is not uncommon for local start-ups to see their personnel leave for similar opportunities in the United States or Europe.

Despite the fact that this portrays a hopeful picture, many talented individuals in the field of technology are unable to take advantage of these prospects due to the challenges associated with employing staff in countries in which the company does not have a legal entity.

As a direct consequence of this, these possibilities are completely missed out on, or the terms of their employment are renegotiated to more accurately represent the situation.

The issue will still persist even after they have been hired. For instance, contract workers are required to generate an invoice at the end of each month, which must then be submitted to the accounting department of the company.

It should come as no surprise that this could cause pay to be delayed. When they are eventually paid, they will be required to convert their salaries into the currency of the country in which they are working. In Nigeria, for instance, this involves engaging in a struggle with the country's banks and FX agents.

raenest founders 881x682 0 1103Raenest Co-Founder, Sodruldeen Mustafa (CTO), Victor Alade (CEO), and Richard Oyome (COO)

As a software engineer looking for remote jobs and later as an Engineering Lead at Acumen Fund attempting to recruit a Ugandan software developer, Victor Alade, CEO and Co-founder of Raenest, had first-hand experience with these issues. These experiences led him to found Raenest, which he now serves as CEO and Co-founder of.

Getting paid for my work when I was in Lagos as a consultant for corporations in the United States and the United Kingdom was difficult the majority of the time. In the years leading up to my employment at a remote location, I was passed over for a number of positions because businesses in Nigeria had the infrastructure to handle payment processing and did not have a legal presence. Later on, when I was directing the engineering team at Acumen Fund, we were unable to engage a Ugandan engineer due to the fact that we did not have a legal organization in Uganda.

Alade, upon seeing that he was not the only one suffering these issues, decided to combine up with Richard Oyome and Sodruldeen Mustapha to develop Raenest, a startup that helps firms "recruit and pay people compliantly." Richard Oyome and Sodruldeen Mustapha are also co-founders of Raenest.

 2 1103A screenshot of the Raenest website

Raenest is in charge of the hiring process as well as the payroll, which makes it simple for startups to hire workers from any location in the world without the need for a separate legal company. They are also responsible for handling taxes and contracts, and they make sure that employees receive their pay within minutes of it being earned. Additionally, workers can transfer their wages into the currency of their home country at advantageous rates.

A virtual card that a company can provide to their employees for official costs and on which they can set a spending limit is provided by the startup. This enables businesses to better monitor the expenses of their staff.

In addition, companies have the ability to use a single currency to power payments in more than 50 different currencies. Raenest provides its employees with various pay-out alternatives, all of which are free of charge. These options include their bank accounts, mobile money, PayPal, Revolut, and TransferWise. They also have the option of utilizing their email addresses or Raenest tags to make the transfer.

The company is also developing products for freelancers who work with clients in other countries. Individuals can establish a virtual foreign account with this option, which is known as Geegpay, and then provide it to prospective employers. They are able to obtain instant payouts as a result of this.

Raenest is a platform that offers a solution that makes it possible for users to automatically produce invoices that their employers may use to pay them. This solution is able to interact with popular accounting software such as QuickBooks, which ensures a smooth process.

Model for doing business and aspirations for the future

At least four different revenue streams contribute to Raenest's overall financial success. The first of them is a fixed fee that organizations pay Raenest whenever they use the platform to employ a new talent.

Additionally, it intends to provide salary advances, however salaries of $30 or less will not incur any interest charges. Gaining access to these pay advances will incur an interest rate of 2.5 percent, while the business will gain money through currency conversion. The company's most recent revenue model requires businesses to pay $3 in order to generate a corporate virtual card.

Geegpay, the company's business-to-consumer offering, has been utilized by over 6,000 people since it was first introduced in April 2022. The company, however, chose not to divulge the number of firms that are now utilizing its services. The startup company is now soliciting money for a pre-seed round in order to boost staff efficiency while also expanding its operations outside of Nigeria.