Employment Hero Clinches AUD$263 Million in Series F, Joins Unicorn Ranks

Employment Hero Clinches AUD$263 Million in Series F, Joins Unicorn Ranks

Sydney's Employment Hero, an all-in-one HR, payroll, and recruitment platform, has secured AUD$263 million ($167 million USD) in its Series F funding round. The latest infusion catapults the nine-year-old company into the unicorn club with a valuation of AUD$2.13 billion ($1.37 billion USD), marking a 75% surge from last year's Series E valuation.

Transaction Highlights:

  • Deal Value: AUD$263 million.
  • Investor Lead: TCV takes the lead, with existing investors Insight Partners, AirTree, Seek, and OneVentures also participating.
  • Recipient: Employment Hero, an Australian-based HR tech firm with a global footprint.

Employment Hero Snapshot:

  • Growth Strategy: CEO Ben Thompson reveals plans to double the UK team to 180 within a year, underlining ambitions to make it the company's largest market.
  • Business Model: Employment Hero offers an integrated platform for SMEs to manage HR, payroll, and recruitment, and has extended its services as an Employer of Record (EOR) via Global Teams.
  • Current Reach: Processes $85 billion in wages annually for 300,000 SMEs, with key markets including Australia, New Zealand, Singapore, Malaysia, and the UK.
  • Innovation and Demand: The platform boasts 20,000 SME customers and 200,000 paid employees in the UK alone, and has grown to 925 remote employees across 19 markets.

Scaling Ambitions:

Thompson aims to make Employment Hero "bigger than Atlassian," with a broader vision to revolutionize the way people are paid through features like InstaPay and the upcoming real-time pay.

Market Dynamics:

Despite being an Australian underdog, Employment Hero is carving out its space in a thriving sector, with rivals like Rippling and HiBob recently securing hefty investments. Thompson believes the Series F funding will solidify Employment Hero's reputation as a major global player.

Financial Ecosystem:

Employment Hero's consumer app, Swag, is designed as a financial super app, offering a digital wallet, debit card, and cashback offers. The app aims to reshape the traditional employment cycle, offering more immediate financial benefits to employees.

AI Integration:

The newly launched "Hero AI" leverages GPT-based large language models to assist employees with FAQs and shoutouts, adding another layer of tech sophistication to the platform.

The Road Ahead:

With total capital raised now at AUD$650 million, Employment Hero is aggressively pursuing its mission to make employment easier and more rewarding. This Series F funding is not just a milestone but a launchpad for scaling globally and introducing disruptive financial solutions like real-time pay through its Swag app.

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