An estimated 169 million employees go overseas for work each year, according to figures from the International Labour Organization, and businesses from all sectors of the economy often depend on migrant labor. However, being outside of their own country’s legal system and financial system offers a number of difficulties, not the least of which is how to be paid, which is perhaps the most crucial issue for the worker themselves.
The corporation, on the other hand, may have to manage payments for employees who come from various regions, many of whom are in temporary or short-term assignments.
It takes more effort than many people on the outside may think to oversee all of this administration and make sure that the employees are paid on time. And it’s an issue that the German company Kadmos is aiming to solve by providing companies with an end-to-end platform that enables them to reduce the hassle and many of the expenses related to paying their international workforce.
Kadmos today announced that it has raised an additional €29 million ($29.5 million) in a series A tranche headed by Blossom capital, with participation from Addition and Atlantic Labs, only four months after announcing a $8.5 million seed round of investment.
Migrant workers must also be able to spend their income since, by definition, they are away from their homes for the sole purpose of seeking employment. Sometimes they get cash payments, allowing them to spend the money locally, but when it comes time to send the money home, they may be hit with astronomical transfer costs. Additionally, a major factor in why migrant workers choose to work overseas in the first place is often the necessity to send money home to their families; nevertheless, doing so may result in significant expenses.
If a business chooses to use intermediaries to pay its employees, such as local banks, remittance firms, agencies, or other third parties, there will be a lot of costs as well as a lot of paperwork and delays.
Just over a year after its launch, Kadmos is already collaborating with maritime businesses who are paying its seafaring staff using an early version of the service.