Employment Hero, a cloud-based HR, payroll, and benefits startup headquartered in Sydney, has raised A$8 million ($6.2 million) in a Series B funding round co-led by Australian employment marketplace SEEK and existing investor OneVentures.
The latest funding round, which was joined by AirTree Ventures and AMP New Ventures, will be used by Employment Hero to roll out new products and solutions that it said will add more value to its platform.
The fresh investment comes about 20 months after it raised A$4.5 million ($3.8 million) in a Series A round that was led by OneVentures and joined by AirTree Ventures and AMP New Ventures in 2016.
The startup, founded in 2013, offers online human resources (HR) software that melds functions like payroll, employee benefits and retirement, employment contracts and accounting into a single web application, called Employment Management Platform.
The platform currently supports around 3,000 businesses and manages over 150,000 employee files. It also integrates with major accounting and payroll platforms including Xero, MYOB, Intuit QuickBooksOnline and Keypay, the company said.
Employment Hero founder CEO Ben Thompson said the latest funds will be used to accelerate its expansion locally.
“We have seen significant traction from New Zealand and the UK, whose employment law and culture are relatively similar to Australia. Like any business, we need to decide where is the best place to invest our resources and as the Australian market took off, we decided to focus on the local market,” he said.
SEEK, the co-lead investor, is an ASX-listed creator and operator of online employment markets. It is also a top company employing over 6,000 people and with a market capitalisation close to A$6 billion ($4.6 billion).
“By working closely with SEEK, we want to be able to make it easier to move from recruiting to onboarding,” said Thompson.
The latest investment means Employment Hero now joins the group of startups, including Jora and Sidekicker, that SEEK has backed. Jora is a global search aggregator while Sidekicker is an employment marketplace.
“Employment Hero is helping businesses succeed by removing major pain points that exist in almost every small to medium Australian business. We are pleased to support a business that is so well aligned to SEEK’s Purpose, which is helping more people live fulfilling and productive working lives and helping organisations succeed,” said Ronnie Fink, Corporate Development Director for SEEK.