The funding includes USD 63 million in Series B equity financing and was led by Carrick Capital Partners, being supported by AB Private Credit Investors, the middle market private capital platform of AllianceBernstein, as well as other existing investors and a debt facility provided by MC Credit Partners.
FT Partners served as the exclusive strategic and financial advisor to OnPay on the equity financing transaction.
This funding comes as a response to OnPay’s vision of expanding its offerings and driving growth for businesses that rely on the company for payroll and HR solutions. Catering for SMBs across the US, OnPay offers compliance management, operation optimisation, and team support.
The funds secured will enable the company to scale its capabilities, invest in product development, expand partnerships and integrations, and accelerate go-to-market strategy. This latest investment marks the increasing market demand for turnkey payroll software.
OnPay offers apps to assist with payroll deductions and taxes, manage teams, and select health insurance and workers’ comp for over 25,000 SMBs across the US.
Companies are increasingly adopting HR and payroll software to tackle paperwork-related slowdowns. According to a Business.com report, 50% of small business HR professionals use cloud-based software to manage HR functions. 69% said that HR software helped their business cut down on payroll processing time, and 25% reported improved legal compliance.
The global HR payroll software market was worth around USD 23 billion in 2021, per Allied Market Research, and is projected to reach more than USD 55 billion by 2031. OnPay has benefited from this growth, hence the funds secured. To date, the company has raised over USD 165 million in equity and debt.
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