In 2007, Jesse Burgess joined his family’s payroll business. He quickly noticed that the business’ six payroll clerks were getting bogged down by repetitive, monotonous tasks. So he sought to streamline those tasks by creating workflow automation tools.
Several years later, Burgess sensed an opportunity to bring the tools he developed for his family’s business to other corporate clients. In 2011, Burgess launched OnPay, a startup that develops payroll solutions as well as software to help manage HR and benefits.
Today, OnPay provides businesses apps to assist with payroll deductions and taxes, manage teams, and select health insurance, workers’ comp, and 401(k) plans for their workforce. OnPay’s products connect with a range of third-party HR and compliance tools, letting customers to sync data between apps, like accounting information.
Companies are increasingly adopting HR and payroll software to tackle paperwork-related slowdowns. According to a recent survey from Business.com, 50% of small business HR professionals use cloud-based software to manage HR functions. Sixty-nine percent of respondents to the survey said that HR software helped their business cut down on payroll processing time, and 25% reported improved legal compliance.
The global HR payroll software market was worth around $23 billion in 2021, per Allied Market Research, and could reach more than $55 billion by 2031.
OnPay has benefitted from the growth. On Tuesday, the company announced that it has secured over $100 million in new funding, inclusive of a $63 million Series B round led by Carrick Capital Partners. MC Credit Partners provided a debt facility, the size of which wasn’t disclosed.
Burgess said that the funding will enable OnPay to “scale its capabilities,” further invest in product development, and accelerate its go-to-market strategy.
“This funding represents a transformative milestone for OnPay and is a testament to the hard work and dedication of our team,” Burgess added in a statement. “We’re excited to expand our offerings and drive impactful growth for businesses that rely on us for payroll and HR.”
AB Private Credit Investors, the middle market private capital platform of AllianceBernstein, also participated in the Series B. To date, Atlanta-based OnPay has raised over $165 million in equity and debt.