Remote work tailwind propels Employment Hero to $800 million valuation – Sydney Morning Herald

Human resources technology startup Employment Hero has leveraged the remote working trend to pick up more cash, with the company raising $140 million in its latest funding round.

The fresh influx of funds has tripled the Sydney-based startup’s paper valuation to $800 million, with US venture capital giant Insight Partners leading the latest funding round. Its existing backers include online jobs site Seek, venture capital firms OneVentures and Airtree Ventures, as well as Salesforce’s venture arm Salesforce Ventures.

“I think people unfortunately have been thrown into really difficult circumstances and they’re trying to figure out how to employ people remotely and we’ve thrown everything at helping them do that,” co-founder and chief executive Ben Thompson said.

“It has become a bit of a tailwind for us and has helped us accelerate our growth as a business.”

Ben Thompson, co-founder of Employment Hero, which has been boosted by the switch to remote work.

Ben Thompson, co-founder of Employment Hero, which has been boosted by the switch to remote work. Credit:Louie Douvis

The former employment lawyer started Employment Hero in 2014 with co-founder Dave Tong to provide an automated service to manage workers, payroll and productivity. It is used by over 6000 businesses and collectively manages over 250,000 employees.

Employment Hero has also entered the fintech space with its instant pay product, which enables people to receive their wages in real-time.

“We’ve got massive global ambitions as a business,” Mr Thompson said. “So we’re moving really fast and we need to keep moving really fast.”

The startup employs 325 people and Mr Thompson expects Employment Hero, which has switched to a remote-first model, to double its number of staff again over the next year.

“It’s not just COVID that has forced people to adopt digital solutions for employment, there’s a general trend towards digitisation and it’s being driven by the Australian Tax Office with Single Touch Payroll, which has forced people to use new systems that are connected,” he said. “This is a trend that’s not going away.”

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