Employment Hero Secures $45M AUD for Global Expansion

Employment Hero Secures $45 Million AUD in Series D Funding

The rapid need for adaptation during the pandemic significantly impacted businesses and the technology platforms supporting them. Ben Thompson, co-founder and CEO of the human resources platform Employment Hero, shared with TechCrunch that the adoption of employment management software was accelerated by approximately five years due to the shift to remote work.

Series D Investment Details

The company, headquartered in Sydney, Australia, has announced a $45 million AUD (roughly $34.8 million USD) Series D funding round. This investment elevates the company’s valuation to over $250 million AUD (approximately $193.4 million USD).

The newly acquired capital will be strategically allocated to facilitate expansion and growth initiatives across key markets, including New Zealand, Southeast Asia, and the United Kingdom.

Investor Participation

SEEK, a global operator of job platforms, spearheaded the investment round. Returning investors OneVentures and AirTreeVentures also participated. Notably, Salesforce Ventures joined as a new investor in this round.

Platform Overview and Growth

Employment Hero is specifically designed to cater to the needs of small-to-medium sized businesses (SMEs). It provides a comprehensive suite of features encompassing human resources, payroll, and benefits administration.

Currently, the platform supports approximately 6,000 SMEs, collectively employing over 250,000 individuals. Last year witnessed a doubling of the company’s full-time employee count to 200, alongside the launch of localized versions in New Zealand, the U.K., Malaysia, and Singapore.

The Series D funding will bolster growth within these existing markets and enable expansion into additional Southeast Asian countries, including Thailand, Vietnam, Indonesia, and the Philippines.

Localization and Regional Support

Localized versions of Employment Hero incorporate pre-built employment contracts and policies ensuring compliance with local legal frameworks. In Malaysia and Singapore, the platform proactively offered research insights into recruitment and employment trends.

Furthermore, in Singapore, the platform consolidated crucial COVID-19 related government support information into a single, easily accessible factsheet.

Strategic Partnerships

Employment Hero has renewed its partnership with SEEK, integrating SEEK job advertisements into the platform within Southeast Asia.

Global Teams Service

Responding to the evolving needs of the pandemic, the company introduced Global Teams, a service designed for remote work. Functioning as a professional employer organization (PEO), it empowers companies to recruit remote employees globally while automating regional compliance procedures.

Global Teams is seamlessly integrated with the core Employment Hero platform, ensuring remote employees have equivalent access to resources as their in-office counterparts.

Customer Adoption of Remote Work Tools

Approximately 75% of Employment Hero’s existing customer base opted to upgrade their subscriptions to incorporate tools supporting remote work management, compliance, and employee wellness initiatives.

Pandemic Response and Resource Hub

During the initial phase of Australia’s nationwide lockdown, Employment Hero swiftly launched a dedicated COVID-19 resource hub. This hub included tools related to the government’s JobKeeper payment scheme and employee wellness surveys.

The company also hosted bi-weekly webinars featuring industry experts, addressing topics such as employee rights concerning leave and pay, mental health support, employer duty of care for remote work, and employment law.

Enhanced Engagement and Productivity Features

As remote work became more prevalent, Employment Hero introduced features designed to enhance engagement and productivity, including one-on-one coaching and tools to facilitate improved communication and feedback.

“Our priority as a company was to provide unwavering support to our clients and the broader small and medium-sized business community throughout the challenges of COVID-19,” stated Thompson.

Early Stage Event Information

Early Stage is a leading event focused on providing practical guidance for startup entrepreneurs and investors. Attendees gain direct insights from successful founders and venture capitalists regarding business building, fundraising, and portfolio management.

The event covers all critical aspects of company development, including fundraising strategies, recruitment processes, sales techniques, legal considerations, public relations, marketing, and brand building.

Each session incorporates dedicated time for audience participation, allowing for questions and discussions.