Payroll and employee benefits platform Employment Hero has today announced it has raised $3 million in its first funding round from OneVentures, with participation from AMP New Ventures. Oversubscribed, the round will help the startup expand its partnerships and explore international opportunities, with a focus on getting into the UK by Christmas.
Ben Thompson, CEO of Employment Hero, said the startup decided to raise its first round of capital to make sure it stays ahead of the pack and continues its rapid development cycle to go beyond HR and payroll management.
“Overall, what we are doing is likely to change the way that corporate super is administered. We want to position ourselves as disrupters, but also as helpful and strategic to existing businesses,” he said.
“We want to help them grow, reduce administration, to hire and retain talented employees, and to help employees get access to a marketplace of superfunds, health insurers, mortgages and other benefits. The platform is a win for our business clients and a win for the employee.”
Founded in 2014, Employment Hero now has 500 employers and 35,000 employees using the platform, and looks to benefit them both.
The platform helps employers manage their HR, looking at things such as onboarding, employee performance, attendance, daily tasks, and rostering. Thanks to Employee Hero’s corporate partnerships, employees are offered a range of benefits that are usually the domain of those working at big corporates, such as deals on gym memberships, mobile phone plans, electricity and gas, and cars through a marketplace.
OneVentures CEO and managing partner Michelle Deaker said that the firm was keen to tap into the burgeoning human resources market, which is worth in excess of $500 million with payroll of $2 billion, and financial services and mortgages commissions in excess of $7 billion.
“The human resources marketplace is poised for significant growth in the next 10 years. Companies around the world are increasing their investment in HR infrastructure with spend in excess of $100 billion per annum and including other benefits potentially up to $1 trillion,” she said.
“Businesses are buying more products and services to help them realise the best return from their people and investing in automation to streamline the delivery of these services.”
While last week’s Brexit vote may change some plans, Employment Hero is one of a growing number of Australian organisations that have signalled intention to do business in the UK. Australian AdTech startup Unlockd raised $15 million in April ahead of its UK launch, while the Australian Securities and Investment Commission’s (ASIC) also recently partnered with the UK’s Financial Services Authority (FSA) to allow fintech companies to more easily expand into the other country.
Data innovation group Data61 also in April signed a deal with Cyber London, a cyber security accelerator and business incubator, that will look to accelerate innovation in the cyber security space in both Australia and the UK through the sharing of expertise, resources, and capital. The two organisations are collaborating on the development of “mutually reinforcing” programs in the UK and Australia
Image: Ben Thompson. Source: Supplied.