With the latest round of funding, Employment Hero reached a AUD 1.25 billion valuation - growing into a unicorn alongside others like Go1, Pet Circle, Airwallex, Tritium and SafetyCulture.
The latest funding round was led by returning investors Seek Investments, with participation from OneVentures, AirTree Ventures and other shareholders. Last year in March, the Sydney-based HR tec company had also raised AUD 45 million in a Series D funding round led by employment and education group SEEK.
The firm's latest funding announcement was in July 2021, when it raised AUD 140 million Series E led by Insight Partners at a valuation of AUD 800 million. It has now raised a total of AUD 220 million.
Expanding its reach and portfolio of companies, Employment Hero has also acquired KeyPay today for an undisclosed amount. As per the deal, KeyPay's workforce management and payroll platform will remain as an independent brand and get investment from Employment Hero to grow its team.
Co-founded by CEO Ben Thompson and CTO Dave Tong in 2014, is now used by more than 80,000 SMEs, representing a total of 750,000 employees. Employment Hero has also grown to become a team of more than 500 full-time employees based around the world.
"Looking ahead, our solutions will continue to improve and develop as we grow our team. With access to more resources, we continue to provide industry-leading tools that make employment easier and more valuable for everyone," the company wrote in its blog.
KeyPay was started in 2010 by Phil Bernie, Richard McLean, Paul Duran and Kristian Reynolds. The firm has a foothold in Australia, New Zealand, Singapore, Malaysia and the United Kingdom. Employment Hero aims to accelerate its growth initiatives in these markets.
Post-acquisition, Bernie and Duran will stay on as KeyPay managing director and chief technology officer respectively.
The latest funding round and acquisition makes Employment Hero the 8th Unicorn in Australia. Recently, India-based HR tech startup Darwinbox also got the Unicorn status. This growth is a testament to HR tech startups' potential and contribution.