HR, payroll and benefits platform, Employment Hero has raised AU$45 million in a Series D funding round to accelerate growth in Australia, and double-down on its international expansion.
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.
As part of its first wave of international roll out, Employment Hero successfully launched localised versions of its signature people, payroll and benefits solution in New Zealand, the United Kingdom, Malaysia and Singapore in late 2020.
What will Employment Hero use this funding for?
Funds raised from the Series D will support Employment Hero’s 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 on the planet.
SEEK intends to help Employment Hero 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.
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 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.
Underpinning Employment Hero’s 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 work, compliance tools and employee wellness services.
To coincide with Employment Hero’s international expansion, the company launched its ‘Global Teams’ service, a Professional Employer Organisation (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.
What does this AU$45 million Series D funding round mean for Employment Hero?
Ben Thompson, CEO and co-founder of Employment Hero, said: “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’ve proven market fit for SMEs. What better time to bring our powerful remote work solution to more of the world?”
“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,” Mr Thompson continued.
“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 recognise that remote employment is just another challenge for SMEs right now and we have the solution to help.
“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 added.
Why has Employment Hero attracted this funding?
Andrew Bassat, Chief Executive and co-founder of SEEK, said: “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.”
Michelle Deaker, Managing Partner at OneVentures, said: “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.”
John Henderson, General Partner of AirTree Ventures, said: “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.”
