In their journey leading and expanding teams at two of the MENA region’s top unicorns, Careem and Kitopi, Akeed Azmi and David Reche identified what they saw as a lucrative $2 billion market opportunity. They pin-pointed payroll management and compliance cost hurdles, exacerbated by human mistakes, as common pain points for their previous companies and many others within the locality.
To tackle these issues head-on, they established Cercli in January. Their startup crafts innovative software engineered to streamline the hiring, management, and payment processes for businesses across the MENA area, looking at the global workforce. This innovation has since secured $4 million in seed financing, led by the San Francisco-based venture capital Afore Capital, marking the firm’s initial venture into the region.
Afore Capital endorsed Cercli, tagging it as MENA’s version of “Rippling,” convinced by the founders’ vision to simplify workforce management and ensure compliance in one of the largest sectors needing innovation,” said Anamitra Banerji, managing partner of Afore Capital.
Azmi’s previous role as Kitopi’s operations leader had him confront these operational inefficiencies firsthand, dealing with payroll management across various countries during the company’s global expansion.
“What I endeavored to solve within Kitopi, akin to Deel’s operations, was establishing a reliable entity for managing payments in new markets,” Azmi shared during an interview with TechCrunch. “That’s when I experienced the complications surrounding payroll processes – a gap that lacked efficient systems for administering payroll over an expansive workforce.”
Convinced that if high-profile startups such as Kitopi encountered such obstacles, other entities, regardless of size, would too, Azmi undertook a comprehensive analysis. His research spanned interviews with over 30 enterprises, ranging from the industrial giant Saudi Aramco to modest family businesses in Dubai, diving deep into their payroll operations.
He discovered small businesses often leaned on vulnerable spreadsheet systems leading to security risks, whereas larger firms poured millions into ERP software like Microsoft Dynamics, SAP, or Oracle for in-house payroll management. Alongside Reche, who previously served as CTO for the Africa-centric sports-tech venture KingMakers, Azmi launched Cercli to consolidate regional payroll management into one cohesive system, phasing out inefficient models.
Cercli has evolved to more than just an HRIS and traditional payroll service provider by delivering localized solutions tailored for MENA businesses, significantly reducing human errors and promoting complete compliance, according to Azmi.
Azmi elaborates how Cercli initially addressed the need for a dedicated payroll system for local employee management. Upon expansion, clients sought global payroll capabilities. Whereas platforms like Deel catered to remote payroll needs, they fell short for localized requirements.
“Our clients began preferring our comprehensive service over existing systems, prompting us to develop multifaceted solutions to cater to both local and global operations,” Azmi highlighted, noting some clients also moved away from standalone HR products in favor of Cercli’s integrated offerings, specifically designed for MENA companies.
Drawing Parallels to Rippling
Azmi pointed out the value of localizing services to accommodate specific labor law compliance and handling salaries for unbanked employees, underscoring the significant cost implications of non-compliance. “The primary hurdle lies in lacking a singular, accurate data source for workforce management,” he added.
Tailored for mid-sized operations, Cercli bridges HR, finance, legal, and IT under one compliant, integrated platform for businesses managing both local and international workforces in the MENA region.
Attributing the success to his team, with a strong backbone in product and engineering from renowned firms, Azmi envisions broader horizons, aiming to automate tedious, manual processes across various business functions.
Cercli, serving a clientele ranging from micro to mid-sized businesses, has witnessed a 25% growth since its inception in January and successfully processed over $23 million in salaries spanning 31 countries.
Emerging Market Payroll Solutions
The soaring demand for payroll and HR solutions in emerging markets underscores global companies’ quest for efficiency. Recent high-profile acquisitions in the sector highlight a consolidation trend, though MENA remains largely untapped. Azmi remarks on the unique position of Cercli, aspiring to pioneer in “codifying regulations” within this region.
Facing potential competition from companies like RemotePass and Workpay, Cercli remains focused on capturing the MENA market. With financial backing from Y Combinator, COTU Ventures, Rebel Fund, and industry influencers, Cercli plans to escalate its growth, further product development, and broaden its market footprint.
Compiled by Techarena.au.
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