216 Capital Backs Talenteo’s HR Tech Push In Africa

Algerian human resources (HR) tech startup Talenteo has wrapped up an undisclosed six-figure investment round from Tunisia-based venture capital firm 216 Capital Ventures.  

Founded by Tarik Metnani and Louai Djaffer in Algeria in 2022, Talenteo is on a mission to digitize HR management for African small and medium sized enterprises (SMEs)—an often-overlooked market segment where legacy systems and manual processes still dominate. With this new capital, the company aims to deepen its presence in Tunisia and accelerate across Francophone Africa—quietly building the infrastructure that powers the continent’s workforce with its payroll software-as-a-service (SaaS) platform.

“Most African SMEs still manage HR on paper or Excel,” Djaffer, who is also the CEO of Talenteo, told Inc. Arabia in an interview. “Global tools often assume a structured HR team or existing tech processes, but that’s rarely the case here. What’s really missing is simplicity, local compliance, and real human support.” 

Talenteo’s software addresses these gaps by offering a platform built from the ground up for local realities: user-friendly, priced for local budgets, and backed by dedicated onboarding and support. “Many of our clients are using HR software for the first time, so handholding really matters,” Djaffer added. 

Talento co-founder and CEO Louai Djaffer. Image courtesy Talento.

The company’s traction has been strong, with over 150 businesses and 10,000 active users already relying on the platform to manage employee records, time tracking, payroll, performance reviews, and compliance. The tailored solution is designed to evolve with the legal and economic complexities of its markets. 

From 216 Capital’s perspective, Talenteo’s edge lies in its hyper-focused, deeply contextual approach. “Talenteo isn't just another player in the HR tech space; they're a standout, carving a unique niche by deeply understanding and precisely serving a market others often overlook or mishandle,” Dhekra Khelifi, Partner at 216 Capital Ventures, told Inc. Arabia. 

The investment marks 216 Capital’s first foray into the Algerian ecosystem, with Khelifi telling us that the synergies in Northwest Africa offer the startup a unique opportunity to scale. “We view Tunisia, Algeria, and Morocco as a single, potent market with nearly 100 million people, offering immense market size opportunities for Tunisian, Algerian, and Moroccan startups. We don't see boundaries; we see powerful complementarities,” Khelifi explained. 

Khelifi added that, in many ways, Talenteo embodies 216 Capital’s thesis of backing scalable, locally rooted infrastructure. “Its deep understanding of North and West African markets, coupled with cost-effective, locally built technology, allows for rapid expansion while remaining highly relevant to regional needs.” 

She pointed to three pillars that define Talenteo’s strategy: hyper-localization, lean and locally crafted technology, and a value proposition adapted to the economic reality of its users. “This isn’t merely about translation; it’s about a profound grasp of the intricate legal frameworks, cultural nuances, and operational realities specific to these diverse economies,” Khelifi said. “While many HR tech companies struggle to adapt their platforms to varied international regulations, Talenteo was built from the ground up to seamlessly navigate these complexities.” 

Khelifi explained that Talenteo's technological prowess is another key differentiator, with a robust platform built by local expertise that understands the region’s specific demands and constraints. Rather than over-engineered solutions, the software is purposefully designed to be both highly efficient and cost-effective, making it well-suited for the operational realities of African SMEs. 

"By leveraging local talent, they've avoided the often-prohibitive development costs and resource drain associated with global platforms, ensuring their solution is both powerful and financially viable for their target clientele. This lean, yet potent, tech stack allows them to innovate rapidly and maintain a sharp competitive edge," she added. 

Dhekra Khelifi, Partner at 216 Capital Ventures. Image courtesy 216 Capital Ventures.

And as Talenteo expands beyond Algeria, it is looking to Tunisia first, said Djaffer. “Tunisia was a natural next step for us, culturally close, with inbound demand even before launch.” 

The firm is also eyeing other Francophone markets across West Africa, where administrative and legal similarities create fertile ground for scale. “In Francophone Africa, laws and payroll vary, but we share a common administrative heritage, which makes adaptation smoother than in other markets,” he explained. 

Still, Djaffer was realistic about the operational challenges of scaling across fragmented markets. “Payroll SaaS is harder to scale than other B2B tools due to compliance needs. We localize payroll carefully, while other modules like performance, time-off and employee management scale more easily. Our go-to-market strategy stays local-first: we listen, test, and adapt before accelerating.” 

Artificial intelligence (AI) is also set to play a key role in Talenteo’s roadmap, but Djaffer insisted it must be applied thoughtfully. “AI will help make HR more accessible. Many SMEs can’t afford HR experts, so having AI assist with tasks like drafting compliant contracts, performance reviews or guiding onboarding is a game-changer.”  

He added that, so far, the results of utilizing AI have been promising. “We piloted early AI features and saw real results: onboarding time cut by 60 percent, support tickets down 30 percent. We see AI helping both in-product and internally to improve business processes. But in my opinion, it must stay rooted in real problems, not a buzz.” 

According to Khelifi, the pragmatic use of AI and the company’s ability to adapt to local markets are just two of the reasons that 216 Capital sees Talenteo as a future category leader. “Talenteo's pricing and overall offering are tailored to the market they serve, primarily SMEs and mid-market companies across North and West Africa. They aren't trying to impose a ‘one-size-fits-all' global pricing model; instead, they've crafted a value proposition that resonates directly with the budget realities and operational scales of these businesses,” she said.  

“This adaptability ensures their comprehensive HR and payroll solutions, enriched with AI for automation and compliance, are not just desirable but genuinely accessible and affordable. This strategic pricing, combined with their localized expertise and efficient tech, positions them as the go-to solution, driving adoption and fostering long-term client relationships,” Khelifi added. 

As for Talenteo, Djaffer told us that scaling means more than technology—it’s about trust, adaptation, and staying grounded. “In fragmented markets, local presence, trust, and hands-on support often matter more than features or big logos. We’ve learned not to assume digital fluency; guidance and support make a big difference.” 

Khelifi echoed his sentiments in her advice to Algerian startups: “Start from deep local insights and meticulously build solutions with regional or global applicability. When it comes to raising funds, the key is to build trust early with local investors or the regional teams of global funds and relentlessly focus on achieving rapid and efficient product-market fit.” 

“Growth here takes time,” said Djaffer. “What matters most is building what makes sense for our markets.” 

Pictured in the lead image is Talento's team. Image courtesy Talento.