In 2007, Jesse Burgess joined the family's payroll operations. He quickly realized that the company's six payroll clerks were stuck in repetitive, monotonous tasks. So he set out to streamline these tasks by creating a workflow automation tool.
After a few years, Burgess saw an opportunity to offer the tools he had developed for his family's business to other corporate clients. In 2011, Mr. Burgess launched OnPay, a startup that develops payroll solutions and software to help manage human resources and benefits.
Today, OnPay offers business apps that help employees with payroll deductions and tax assistance, manage their teams, and choose health insurance, workers' compensation, and 401(k) plans. OnPay's products connect with a variety of third-party human resources and compliance tools, allowing customers to sync data such as accounting information between apps.
More and more companies are implementing HR and payroll software to combat paperwork-related delays. According to a recent study by Business.com, 50% of HR professionals at small and medium-sized businesses use cloud-based software to manage their HR functions. 69% of survey respondents said their HR software reduced payroll processing time, and 25% said it improved legal compliance.
According to Allied Market Research, the global HR payroll software market was worth approximately $23 billion in 2021 and could reach over $55 billion by 2031.
OnPay is benefiting from growth. The company announced Tuesday that it has secured more than $100 million in new funding, including a $63 million Series B round led by Carrick Capital Partners. MC Credit Partners provided the debt facility, the size of which was not disclosed.
Burgess said the funding will allow OnPay to “expand its capabilities”, invest further in product development and accelerate its go-to-market strategy.
“This funding is a transformational milestone for OnPay and is a testament to the hard work and dedication of our team,” Burgess added in a statement. “We are excited to expand our offering and drive impactful growth for businesses that rely on us for payroll and human resources management.”
AB Private Credit Investors, AllianceBernstein's middle market private capital platform, also participated in the Series B. To date, Atlanta-based OnPay has raised more than $165 million in equity and debt.