Employment Hero raises RM142m in Series D funding

Startup to use funds to accelerate growth in Australia and double down on its international expansion strategy

PETALING JAYA: HR-tech startup, Employment Hero has raised RM141.6 million in a series D funding round to accelerate growth in Australia and double down on its international expansion strategy.

It revealed that the latest funding round was led by returning investor SEEK with participation from previous backers OneVentures and AirTree Ventures as well as its new investor Salesforce Ventures.

For its international rollout, the startup has launched localised versions of its people, payroll and benefits solution in New Zealand, the United Kingdom, Malaysia and Singapore in late 2020.

It revealed that the funds raised from series D will help its continued growth in these markets and facilitate a significant push across Southeast Asia.

Employment Hero CEO and cofounder Ben Thompson said this latest round of funding will allow the company to continue building powerful features to simplify employment.

“It also enables us to reach more of the world. I started Employment Hero to help as many SMEs as possible and this is the next step in that journey.

“We know the last year has been incredibly difficult for employers everywhere, particularly as many were thrown into the deep end when it came to digital transformation and remote work. We recognise that remote employment is just another challenge for SMEs right now and we have the solution to help.” he added.

In a statement, SEEK stated that it intends to help Employment Hero achieve its goal of becoming the largest HR and benefits platform for SMEs and is currently exploring the ways to promote and bundle their offerings in Australia, New Zealand and Southeast Asia.

Currently, the platform has over 6,000 SMEs managing over 250,000 employees and has seen a 100% year-on-year (yoy) increase in revenue since its inception.

“Underpinning Employment Hero’s growth – during a time in which the macro environment proved challenging for businesses across all sectors – has been a resounding commitment to supporting SMEs with a portfolio of Covid-related resources.

“75% of Employment Hero’s new and existing customer base upgraded their subscriptions to harness additional features, including tools for managing remote work, compliance tools and employee wellness services,” it said

In line with its international expansion, Employment Hero has launched its professional employer organisation solution, ‘Global Teams’ service which enables SMEs everywhere the ability to find, onboard and manage remote talent complemented by an in-built recruitment tool.