CloudPay, a prominent payroll services provider, has secured $120 million in new funding to further its growth and development in payroll solutions
In 1996, Patersons HR and Payroll Solutions established a joint venture called CloudPay to offer enterprise clients payroll and payment services.
Over the subsequent decades, CloudPay expanded discreetly, incorporating workflow automation capabilities to remain competitive with its younger competitors.CFO Andy Thomson assures TechCrunch that it will continue to grow.
Thomson asserts that CloudPay is managing the payroll processes of 280 organizations, including Visa, Wayfair, Wells Fargo, Expedia, and The London Stock Exchange. The company processes over 3 million pay slips annually in over 130 countries.
Thomson stated that CloudPay is currently operating at a contracted revenue of $125 million. “Our revenue has increased by more than twofold in the past three years.”
Blue Owl Capital has led a new $120 million funding round for the company, enabling it to accelerate its development further. Thomson stated that the round values of CloudPay were “significantly higher” than the company’s most recent round in October 2022, which raised its total to $228 million.
“Customer expectations are also evolving in an environment of perpetual change,” he stated. “They anticipate more.”
In the on-demand culture of the world, traditional payroll is not always suitable, so we have adapted payroll to meet the new demands. The complexity and diversity of compliance and legislation have increased from country to country.
CloudPay provides various pay-on-demand services, such as global payroll and salary payments. Finance teams are supplied with funding and pay options locally tailored to employees, while payroll specialists are provided with real-time reports and customizable dashboards.
The competition for payroll software has not diminished in any way. Start-ups such as Workpay, Symmetrical.ai, Payroll Integrations, and Skuad, which fintech company Payoneer recently acquired, are backed by Y Combinator.
Indeed, my colleague Mary Ann has written that nearly every venture in the present day is interested in assisting individuals in obtaining payment.
CloudPay, which has offices in Raleigh, Budapest, Shanghai, Costa Rica, Barcelona, and other locations, intends to allocate the proceeds from its most recent fundraising effort to recruit new integrated partners and invest in automation and AI technology. The company has a workforce of 1,350 individuals.
Thomson stated, “We have prioritized CloudPay’s technological innovation this year, and this round of funding will enable us to expedite our timeline.” “We anticipate that we will make AI announcements later this year.”
Rho Capital Partners, The Olayan Group, and Hollyport Capital also contributed to the most recent tranche of CloudPay.
