In 2007, Jesse Burgess joined his family's payroll business. He quickly noticed that the business's six payroll clerks were being burdened with repetitive, monotonous tasks—and so he sought to streamline those tasks by creating workflow automation tools.
Several years later, Burgess had the opportunity to bring the tools he developed for his family's business to other corporate clients. In 2011, Burgess launched onA startup that develops payroll solutions as well as software to help manage HR and benefits.
Today, OnPay offers business apps to help with payroll and taxes, manage teams, and select from health insurance, 401k plans for employee companies and their workforce. OnPay's products connect to a range of third-party HR and compliance tools, enabling customers to sync data between apps, such as accounting information.
Companies are increasingly adopting HR and payroll software to combat the paperwork-related slowdown. According to a Recent surveys From Business.com, 50% of small business HR professionals use cloud-based software to manage HR functions. Sixty-nine percent of survey respondents said HR software helped their business reduce payroll processing time, while 25% reported improved legal compliance.
The global HR payroll software market was valued at approximately $23 billion in 2021, per Allied Market Research, and could reach over $55 billion by 2031.
OnPay has benefited from growth. On Tuesday, the institution said announcement That it has secured more than $100 million in new financing, including a $63 million Series B round led by Carrick Capital Partners. MC Credit Partners provided a loan facility, the size of which was not disclosed.
Burgess said the funding will enable OnPay to “increase its capabilities”, invest more in product development, and accelerate its go-to-market strategy.
“This funding represents a transformational 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 the businesses that rely on us for payroll and HR.”
AB Private Credit Investors, Alliance Bernstein's middle market private capital platform, also participated in Series B. To date Atlanta-based OnPay has raised more than $165 million in equity and debt.