All-in-one HR, payroll, and benefits platform, Employment Hero, has tripled its valuation to RM2.5 billion in six months after raising RM420 million in a Series E funding round. The latest round is led by US-based Insight Partners – a global venture capital and private equity firm supporting technology scale-ups driving meaningful change in their industries.
The company plans to use the fresh funds to further accelerate expansion efforts into Southeast Asian markets. It also plans to expand across Western Europe, enhancing its platform engineering abilities, and increasing headcount.
Employment Hero’s growth in Southeast Asia follows the first wave of its international rollout plan, which kicked off in October 2020 and saw the company successfully launch localised versions of its signature people, payroll, and benefits solution in Malaysia, Singapore, New Zealand, and the United Kingdom. The company’s foray into these markets included the development and sharing of hyper-local and timely resources and access to pre-built employment contracts and policies compliant with local employment laws.
This announcement comes as Employment Hero reveals 113 percent year-on-year revenue growth and records RM44.1 billion in gross wages processed through the platform in the past 12 months. Co-founded by Ben Thompson, CEO, and Dave Tong, CTO, Employment Hero currently serves over 6,000 businesses and manages over 250,000 employees internationally. In the 2020-2021 fiscal year, the company increased its headcount by 65 percent, bringing the team to 325 full-time equivalents (FTEs).
To support its rapid growth, Employment Hero has also announced a brand refresh and new website after completing research with thousands of potential customers, in-line with its goal to make employment easier and more rewarding for everyone.
Employment Hero’s continuing push towards further international expansion is supported by the company’s ‘Global Teams’ service, a Professional Employer Organization (PEO) solution designed to power the remote work revolution globally. Integrating with the Employment Hero software platform, Global Teams gives SMEs anywhere the ability to find, onboard and manage remote talent legally and seamlessly, while also offering an in-built recruitment tool that allows businesses to easily create and publish open positions to over 1,700 job boards worldwide.
Ben Thompson, CEO and co-founder of Employment Hero, said,“As the Covid-19 pandemic rages on in the region, with several SMEs still working remotely or in split teams, we are proud to provide businesses with solutions that are designed to make the working experience seamless and sustainable. Supporting SMEs through this transitional period and helping them elevate their mission has fuelled our passion for growth. We’ve seen the positive impact that Employment Hero’s automated, simple and powerful solutions have had on businesses in vastly different markets and we’re committed to reaching more employers in the near future.”
Thompson added that with an ever-evolving way of working and an uptick in hybrid arrangements, the business is excited to continue supporting SMEs through this transitional period and helping them grow.
“This latest round of funding will enable us to bolster our brilliant team and accelerate our innovation timelines with the ultimate goal of simplifying employment for SMEs all around the world. We’re excited to broaden our reach with entry into new markets,” he added.
Rachel Geller, Managing Director of Insight Partners, said, “We have been following Employment Hero’s journey for four years and have seen the impressive and consistent growth experienced by the company. Its customer-centric solutions have been embraced globally by the small and medium business community and we are looking forward to supporting them through this next phase of their expansion journey.”