Jesse Burgess, the founder of OnPay, drew inspiration for the startup from his family’s payroll business. Back in 2007, while working in the family firm, he identified inefficiencies caused by repetitive tasks that slowed down payroll clerks. To address this, he developed workflow automation tools to streamline operations. This hands-on experience laid the groundwork for OnPay, which he officially launched in 2011.
OnPay offers a suite of software solutions for payroll, HR, and benefits management. Businesses use OnPay to handle payroll deductions, taxes, team management, and employee benefits, such as health insurance, workers’ compensation, and retirement plans. The software integrates with third-party HR and compliance tools, enabling seamless data synchronization across apps, including accounting platforms.
The demand for HR and payroll software continues to grow as businesses seek to eliminate paperwork-related inefficiencies. According to a Business.com survey, 50% of small business HR professionals now use cloud-based solutions for HR tasks, with 69% reporting reduced payroll processing times and 25% citing improved legal compliance. Globally, the HR payroll software market is projected to expand from $23 billion in 2021 to over $55 billion by 2031, as per Allied Market Research.
OnPay has capitalized on this trend, announcing a $100 million funding milestone on Tuesday. The funding includes a $63 million Series B round led by Carrick Capital Partners and a debt facility from MC Credit Partners, though the latter’s size was not disclosed. AB Private Credit Investors, part of AllianceBernstein, also participated in the Series B. With this latest round, OnPay’s total funding now exceeds $165 million in equity and debt.
Burgess plans to use the new funds to expand OnPay’s capabilities, enhance its product offerings, and accelerate its market reach. “This funding represents a transformative milestone for OnPay and is a testament to the hard work and dedication of our team,” Burgess said in a statement. “We’re excited to expand our offerings and drive impactful growth for businesses that rely on us for payroll and HR.”
Atlanta-based OnPay’s growth reflects the increasing reliance on technology to simplify administrative tasks, allowing companies to focus on strategic goals while maintaining compliance and efficiency.
Featured image courtesy of PCMag
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