Leading global payroll provider CloudPay today announced it has raised $35 million in growth capital. New investor Runway Growth Capital joined existing investors Rho Ventures and Pinnacle Investment Partners to support scaling the business as the company prepares to bring new products to market.
This funding comes shortly after CloudPay achieved over 30 percent growth in 2019 and expects a similar growth rate in 2020.
As critical core infrastructure, CloudPay helps organizations ensure multinational payroll compliance, data security and accuracy. CloudPay currently supports multinational customers in 130+ countries. Through its proprietary unified platform, the company processes payroll in line with often complex local and country-specific requirements, eliminating error-prone manual processes and ensuring timely payments.
Paul Bartlett, CloudPay’s CEO, commented, "We are very excited by our momentum, in terms of both revenue growth and enhancements to our market leading solution for processing global payroll. This growth capital, by including new investors, validates our momentum and will enable us to continue to expand the global payroll processing category through new products, services, and selected acquisitions being developed with the input and guidance of our valued customers.”
“While many software sales are down now due to the current recession, some Payroll solutions are actually gaining new customers. Multi-tenant cloud solutions and Payroll service bureau offerings are doing well as their cost structure may be lower and because vendors (not customers) are making necessary updates,” says HR Industry Analyst Brian Sommer. “A $35 million capital raise more than validates the growth this industry is encountering.”
Joshua Ruch, CloudPay’s Chairman, said, “CloudPay’s growth momentum confirms that the market is recognizing the value of its extensive investment in technology to build a unique unified global payroll solution. This growth capital will help the company further expand its global payroll infrastructure and introduce new products that help organizations transform payroll into a strategic function. The timing of this funding is particularly germane as CloudPay experiences escalating demand for its compliant-centric unified solutions.”