Australian HR startup targets UK with $2m series A

The Employment Hero team at work. Photo credit: Employment Hero.

Australian startup Employment Hero has raised a series A round worth US$2.2 million, the company announced today. The oversubscribed round was led by venture capital firm OneVentures and was joined by AMP New Ventures.

The Sydney-based startup makes online human resources software for companies. The software combines functions like payroll, employee benefits and retirement, employment contracts, accounting, and more on a single web app.

Employment Hero is eyeing the UK, with a potential market of 20 million employees.

It also offers employees a marketplace for services like health and insurance, mobile phone plans, gym membership discounts, etc. This is possible through corporate partnerships Employment Hero has clinched to enrich its offering.

The funding will be used for adding more features to the product and for expanding the company’s footprint beyond Australia. Specifically, Employment Hero is eyeing the UK, with a potential market of 20 million employees.

It’s the first round of external funding for the startup, which has been self-financed since starting out in 2013.

“We want to help [businesses] grow, reduce administration, [and] hire and retain talented employees, and to help employees get access to a marketplace of superfunds, health insurers, mortgages, and other benefits,” says CEO Ben Thompson.

Employment Hero has registered 35,000 employees and 500 employers from Australia as users. Its clients include online retailer Kogan, cosmetics and beauty products company ModelCo, and graphic design tools startup Canva.

Converted from Australian dollars. US$1 = A$1.35