In 1996, Patersons HR and Payroll Solutions launched a venture called CloudPay to provide payroll and payments services to corporate clients. CloudPay quietly grew over the next few decades, adding workflow automation features to keep up with emerging rivals.
CFO Andy Thomson assured TechCrunch that the company is still growing.
Thomson claims that CrowdPay processes payroll for 280 companies, including Visa, Wayfair, Wells Fargo, Expedia and the London Stock Exchange, and processes more than 3 million pay slips per year in over 130 countries.
“CrowdPay has contracted revenue of $125 million,” Thomson said, “and has more than doubled its revenue over the past three years.”
Now, the company has raised a new $120 million funding round led by Blue Owl Capital to further fuel its growth. Taking its total funding to $228 million, the round values CrowdPay “significantly higher” than the company's previous round in October 2022, Thomson said.
“In a constantly changing environment, customer expectations are changing too,” he says. “Customer expectations are increasing. In an on-demand culture around the world, traditional payroll doesn't always fit, so we've evolved our payroll to meet new demands. Compliance and laws are also becoming more complex and diverse from country to country.”
Today, CloudPay offers a full range of global payroll, payroll delivery and on-demand payment services, giving payroll professionals real-time reporting and customizable dashboards, while finance teams can choose localized funding and payment options for their employees.
The payroll software race is still going strong, with startups like Y Combinator-backed Workpay, Symmetrical.ai, Payroll Integrations, and Skuad, which was just acquired this week by fintech Payoneer. In fact, my colleague Mary Ann writes that it seems like just about every startup these days wants to help people pay their payroll.
CloudPay, which has 1,350 employees with offices in Raleigh, Budapest, Shanghai, Costa Rica and Barcelona, plans to use the proceeds from its latest funding to acquire new integration partners and invest in automation and AI technologies.
“Technology innovation at CrowdPay has been a big focus for us this year, and this funding allows us to accelerate that timeline,” Thomson said. “We expect to make an announcement around AI later this year.”
Rho Capital Partners, The Olayan Group and Hollyport Capital also invested in CloudPay's latest tranche.
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