Employment Hero raises US$99mil in Series E round, set to expand further

• US-based Insight Partners led this round
• Funding will fuel expansion into SEA, across Western Europe

HR platform, Employment Hero has announced that it has raised US$99mil (RM420mil) in a Series E funding round led by US-based Insight Partners.

[RM1 = US$0.237]

In a statement the company said it has now valued at tripled its valuation to US$589.5mil (RM2.5bil) in six months and plans to use the fresh funds to fuel its expansion into Southeast Asian markets and Western Europe, enhance its platform and make new hires. 

Employment Hero’s expansion plan kicked off in October 2020 with the launch of its localised versions in Malaysia, Singapore, New Zealand, and the United Kingdom, it said.

The company’s foray into these markets included the development and sharing of hyper-local and timely resources and access to pre-built employment contracts and policies compliant with local employment laws, it added.

The announcement comes as Employment Hero claiimed to have logged a 113% year-on-year revenue growth and recorded RM44.1bil (US$10.4bil) in gross wages processed in the past 12 months, it claimed.

“We are proud to provide businesses with solutions that are designed to make the working experience seamless and sustainable.

“We’ve seen the positive impact that Employment Hero’s automated solutions have had on businesses and we’re committed to reaching more employers in the near future,” said Ben Thompson, chief executive officer (CEO) and co-founder of Employment Hero.

“This latest round of funding will enable us to bolster our team and accelerate our innovation timelines with the ultimate goal of simplifying employment for SMEs all around the world.”

“We have been following Employment Hero’s journey for four years and have seen the consistent growth experienced by the company.

“Its customer-centric solutions have been embraced globally and we look forward to supporting them through the next phase of their expansion,” said Rachel Geller, managing director, Insight Partners.

Co-founded by Ben Thompson and chief technology officer (CTO), Dave Tong, Employment Hero said it currently serves over 6,000 businesses and manages over 250,000 employees internationally, the company said.

In the 2020-2021 fiscal year, the company increased its headcount by 65%, bringing the team to 325 full-time equivalents (FTEs).

To support its growth, Employment Hero conducted a brand refresh and released a new website after completing research with thousands of potential customers.