Payroll Automation Startup Secures $15.6M Series A Funding

Payroll Automation: Pento Secures $15.6 Million Series A Funding

While perhaps not a glamorous sector, payroll automation represents a solid business opportunity. Payfit currently leads the startup landscape in this area, having secured over $208.4 million in funding to address a commonly frustrating process for many organizations.

However, Payfit’s broad scope of services may create vulnerabilities. Now, a new company is emerging with a focused strategy: to specialize solely in streamlining payroll automation.

Introducing Pento: A Dedicated Payroll Solution

Danish startup Pento, founded by Jonas Bøgh Larsen and Emil Hagbarth Rasmussen, has successfully raised $15.6 million in a Series A funding round. This round was spearheaded by General Catalyst, with participation from Avid Ventures and LocalGlobe (U.K.).

Existing investors – Point Nine Capital, Moonfire Ventures, Hustle Fund, and Seedcamp – also contributed, alongside a group of notable angel investors. This latest investment brings Pento’s total funding to $18.4 million.

Growing Customer Base and Core Functionality

Pento currently serves 700 companies, including prominent names like Pleo and Cuvva in the tech sector. The platform also supports large hospitality brands such as Honest Burgers, as well as retail and e-commerce businesses like Lacoste and Beauty Pie.

The system replaces traditional methods like spreadsheets with cloud-based tools, providing real-time calculations, enhanced transparency, and comprehensive support via both online channels and telephone assistance.

Automating the Entire Payroll Process

According to Pento co-founder and CEO Jonas Bøgh Larsen, the primary function of their platform is to replace payroll outsourcing. A significant number of European companies currently rely on external accountants for this task.

Pento automates the complete workflow, encompassing reporting, tax calculations, and payment processing. Unlike many other platforms that focus solely on tax and National Insurance calculations, Pento handles reporting and payments as well, integrating seamlessly with existing HR systems.

General Catalyst on Pento’s Potential

Adam Valkin, managing director at General Catalyst, commented on the state of the payroll industry: “Despite its critical importance to businesses, payroll remains surprisingly underdeveloped in terms of digital solutions.

It’s often perceived as overly complex and inaccessible to those without specialized expertise, leading many to expensive outsourcing options. Pento challenges this perception by being specifically designed for HR and finance teams, created by leaders who understand the associated challenges.

The platform is user-friendly, transparent, flexible, secure, and cost-effective – representing the future of employee compensation.”

Notable Angel Investors

Pento’s angel investor network includes individuals from leading companies such as Stripe (Thairu and Diede van Lamoen), Monzo (Tom Blomfield), GoCardless (Matt Robinson), Zoom (Eric Yuan), Cuvva (Freddy Macnamara), and Intercom (Des Traynor), among others.