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Australia-headquartered HR, payroll, and benefits platform Employment Hero on Tuesday announced it has raised AU$45 million in a Series D funding round to accelerate growth in Australia, and double-down on its international expansion strategy.
The latest funding was led by return investor SEEK, with participation from previous backers, OneVentures and AirTree Ventures, as well as the company’s newest investor, Salesforce Ventures.
“We’ve never been in a better position to step up to the global playing field. Employment Hero has established itself as one of the best, all-in-one HR, payroll, and benefits platforms in Australia, and we have a proven market fit for small and medium enterprises (SMEs). What better time to bring our powerful remote work solution to more of the world,” shared Ben Thompson, chief executive officer, and co-founder, Employment Hero.
Funds raised from the Series D will support its continued growth in these markets and facilitate a significant push across Southeast Asia, reinforcing the company’s mission to make employment easier and more rewarding for every SME worldwide.
“Employment complexity is a universal problem. No one starts a business to be an employer and most are ill-equipped to manage employment successfully. We understand this and have developed a platform with the tools to help. Our goal is to deliver these tools to every employer and employee on the planet and make them as great as they can be,” Thompson continued.
As part of its first wave of an international rollout, the company successfully launched localized versions of its signature people, payroll, and benefits solution in New Zealand, the UK, Malaysia, and Singapore in late 2020.
“We know the last year has been incredibly difficult for employers everywhere, particularly as many were thrown into the deep end when it came to digital transformation and remote work. We recognize that remote employment is just another challenge for SMEs right now and we have the solution to help,” Thompson shared.
“This latest round of funding will allow us to continue building powerful features to simplify employment. It also enables us to reach more of the world. I started Employment Hero to help as many SMEs as possible and this is the next step in that journey,” he further added.
SEEK intends to help the platform achieve its goal of becoming the largest HR and benefits platform for SMEs in the world and is currently exploring ways to cross-promote and bundle SEEK’s products and services with Employment Hero in Australia, New Zealand, and Southeast Asia.
“For the past four years, SEEK has watched Employment Hero go from strength to strength in the APAC market. We are confident that Employment Hero will positively impact small business communities in its chosen international markets. We are looking forward to our strengthened partnership with Employment Hero as it continues to drive change in the HR tech space and build a network of empowered employers,” said Andrew Bassat, chief executive officer and co-founder of SEEK.
Employment Hero has over 6,000 SMEs, collectively managing over 250,000 employees, using its platform and has experienced a 100 per cent year-on-year (y-o-y) increase in revenue since inception. The company’s headcount increased by 50 per cent in 2020, bringing the team to more than 200 FTEs globally.
“OneVentures is excited to continue our partnership with Employment Hero as it strengthens its presence on the global stage. We’ve seen outstanding year-on-year growth in the company since our early investment. We are strong believers in the sector thematic and the future of the company to dominate and innovate in their vision to build a better world at work,” explained Michelle Deaker, managing partner, OneVentures.
To coincide with the platform’s international expansion, the company launched its ‘Global Teams’ service, a professional employer organization (PEO) solution, designed to power the remote work revolution in Australia and across the globe. Integrating with the Employment Hero software platform, Global Teams gives SMEs everywhere the ability to find, onboard, and manage remote talent legally and seamlessly, while also offering an in-built recruitment tool that allows SMEs to easily create and publish open positions to over 1,700 job boards worldwide.
“Employment Hero has been tireless in its efforts to help SMBs. Over the past few years, we’ve seen it succeed tremendously in penetrating key international markets. We believe that the company’s offering is well-positioned to break down borders, which is fundamental in a world where a distributed workforce is increasingly becoming the norm. We’re delighted to be a part of Employment Hero’s journey to continued success,” stated John Henderson, general partner, AirTree Ventures.
Underpinning its growth—during a time in which the macro environment proved challenging for businesses across all sectors—has been a resounding commitment to supporting SMEs with a portfolio of COVID-related resources. Seventy-five per cent of Employment Hero’s new and existing customer base upgraded their subscriptions to harness additional features, including tools for managing remote workers, compliance tools, and employee wellness services.