Employment Hero nets $130m, buys Australian HR tech firm

Employment Hero, an Australia-based human resources tech platform, has raised US$130 million in a round led by Seek Investments and joined by OneVentures, AirTree Ventures, and other shareholders.

Team Employment Hero / Photo credit: Employment Hero

With this round, the startup’s valuation has nearly reached unicorn status at AU$1.25 billion (US$901.5 million).

Employment Hero helps businesses manage their workforce through the changing nature of work by helping teams stay connected through fully integrated HR solutions.

The funding will be used to create solutions in ways that will transform what businesses and their employees can expect from employment, creating well-rounded experiences for employees and employers alike, Ben Thompson, co-founder and CEO of Employment Hero, told Tech in Asia in an email.

“70% of all jobs are provided by SMEs, but most business owners still feel anxious, under qualified and under-resourced as employers. Our mission is to create as many quality employment opportunities as possible by offering a comprehensive and user-friendly HR system,” said Thompson.

With the latest round, the Sydney-based startup has raised US$286 million in funding to date.

A key acquisition

Employment Hero has also acquired KeyPay, an Australia-based workforce management and payroll solution.

While the deal size was not disclosed, Thompson said the KeyPay acquisition will allow Employment Hero to offer a complete suite of employment management solutions that covers four key pillars: talent solutions, core HR, payroll, and e-benefits. Thompson had earlier been a seed investor in KeyPay.

Ben Thompson, co-founder and CEO, Employment Hero / Photo credit: Employment Hero

Founded in 2010 by Phil Bernie, Richard McLean, Paul Duran, and Kristian Reynolds, KeyPay has a footprint across Singapore, Malaysia, Australia, New Zealand, and the UK. This acquisition will allow Employment Hero to further accelerate its growth initiatives in these markets, said Thompson.

KeyPay will remain an independent brand and co-founders Bernie and Duran will stay at the startup as managing director and CTO, respectively.

Tracking growth

Founded in 2014 by Thompson and Dave Tong, Employment Hero now serves over 80,000 businesses, collectively managing over 750,000 employees. Its core platform reduces administration time by up to 80%, the startup said.

SEA potential expansion