Australia’s cloud-based HR startup Employment Hero raises $6.2m Series B

Employment Hero co-founder and CEO Ben Thompson and co-founder and CTO Dave Tong. Photo by Wesley Nel

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.

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Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

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Following vacancies can be applied for (only in Singapore).   

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  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
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Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.