- The HR, payroll and benefits platform received Series E funds from Insight Partners, the global venture capital and private equity firm
- Funding to support Employment Hero’s platform development, international expansion and headcount growth
- Company records 113 per cent year-on-year recurring revenue growth and tripling its valuation from £134 million to £430 million within six months
London, UK: 21 July 2021 – Australian all-in-one HR, payroll and benefits platform, Employment Hero, today announced it has raised £75 million in a Series E funding round to accelerate expansion efforts into the international and Western European market, bolster its engineering capabilities and enhance its market-leading platform. The latest funding round is led by Insight Partners – a global venture capital and private equity firm supporting technology scale-ups driving meaningful change in their industries.
Employment Hero launched in the UK in late 2020 and has already exceeded growth targets, with plans to use some of the funding to double its UK sales force. This latest funding round brings the total raised to date to £114 million.
Ben Thompson, CEO and co-founder of Employment Hero, said: “We’ve experienced exponential growth in the past year both in Australia and overseas, and significantly in the UK. Our success in global markets has instilled in us the confidence to pursue further expansion, with SMEs and employees at the heart of our ambitions.”
“This latest round of funding will enable us to bolster our brilliant team and accelerate our innovation timelines with the ultimate goal of simplifying employment for SMEs all around the world. We’re excited to broaden our reach with entry into new markets,” Thompson added.
Rachel Geller, Managing Director of Insight Partners, said: “We have been following Employment Hero’s journey for four years and have seen the impressive and consistent growth experienced by the company. Its customer-centric solutions have been embraced globally by the small and medium business community and we are looking forward to supporting them through this next phase of their expansion journey.”
The demand for Employment Hero’s unique and integrated approach is high, considering the increasing burden on UK SMEs to elevate their HR functions, these initiatives all serve to further the company’s mission to launch SMEs on the path to success with its end-to-end payroll, people management and productivity solutions.
The announcement comes as Employment Hero also reveals 113 per cent year-on-year recurring revenue growth, more than tripling its valuation from £134 million to £430 million within six months and putting it on the fast track to becoming one of Australia’s next tech unicorns.
Employment Hero currently serves more than 6,000 businesses worldwide and collectively manages over 250,000 employees. In the 2020-2021 fiscal year, the company increased its headcount by 65 per cent, bringing the team to 325 full time employees.
The company’s accelerated growth and success in securing funding follows the first wave of its international rollout plan, which kicked off October 2020 and saw Employment Hero successfully launch localised versions of its signature people, payroll, and benefits solution in the UK, New Zealand, Malaysia, and Singapore. The company’s foray into these markets included the development and sharing of hyper-local and timely resources and access to pre-built employment contracts and policies compliant with local employment laws.
Thompson continued, “Managing a distributed workforce continues to be a challenge for businesses and our solutions are designed to make remote working as seamless and sustainable as we possibly can. Supporting SMEs through this transitional period and helping them elevate their mission, has fuelled our passion for growth. We’ve seen the positive impact that Employment Hero’s automated, simple and powerful solutions have had on businesses in vastly different markets and we’re committed to reaching more employers in the near future.”
“Employers all around the world are faced with a myriad of challenges – not only are they striving to succeed in business, but many are navigating the complexities of employment law, people management and cultural growth. This is compounded with the fact that many are struggling to stay afloat, keep up-to-date with the constant evolution of consumer expectations, behaviour, and the roadblocks presented by the ongoing global health crisis. Employment Hero helps reduce employment compliance burdens so they can focus on thriving.”