Employment Hero raises US$35m Series D funding

Sydney-based Employment Hero, a HR-tech startup providing cloud-based HR, payroll, engagement and employee benefits tools targeted at small and medium-sized businesses, announced yesterday that it has raised A$45 million (US$35 million) in a Series D funding round led by employment and education group SEEK, a long-time investor of the company. This is the largest funding round in Australia this year so far.

Other notable investors participating in the round are leading Australian venture capital firm OneVentures and technology-focused fund AirTree Ventures, both of which have previously invested in Employment Hero. Salesforce Ventures, the strategic venture arm of Salesforce, also joined the round.

This latest funding brings Employment Hero's total valuation to A$250 million (US$193 million). The startup has said that it will use the fresh capital to support growth in its existing overseas markets—New Zealand, the UK, Malaysia, and Singapore—and expand into other Southeast Asian countries.

Employment Hero was founded in 2014 by CEO Ben Thompson (above left) and CTO Dave Tong (above right). It grew significantly in 2020 and currently serves about 6,000 SMEs, up from 4,000 in 2019. The startup also increased its full-time head count to 200 last year, up from around 130, and now has offices both across Australia and in several of its overseas markets including New Zealand, Singapore, the Philippines, and the UK.