Silicon Valley-based growth capital firm Technology Crossover Ventures has led a $263 million Series F capital raising for software company Employment Hero.
The raise lifts the value of Employment Hero close to $2 billion.
The company was founded by chief executive Ben Thompson and Chris Tong in 2013.
Employment Hero’s software was initially developed to simplify the process of onboarding new employees. The company recently released a new app, Swag, that combines conventional rostering, payslip and leave request functions with advanced recruitment tools.
Thompson said Employment Hero had not been actively seeking new funding but the company’s growth record had attracted new investment interest.
The current capital raising was supported by another US growth investor, Insight Partners, which led Employment Hero’s 2021 funding round, and other existing investors AirTree Ventures, Seek Investments and OneVentures.
Some of the new capital will be used to ramp up Employment Hero’s presence in the lucrative but highly competitive UK market where it already has around 20,000 corporate customers. The company plans to double the size of its UK team to around 180.
TCV general partner Muz Ashraf and partner Alexander Wortmann have been following Employment Hero for several years.
“Employment Hero is a best-in-class HRIS platform which is differentiated in offering integrated HR and payroll functionality across multiple geographies,” Wortmann said in a statement. “By connecting businesses to a vast pool of talent, Employment Hero is now reimagining recruitment and payroll for the modern age.”
Image: Employment Hero co-founders Ben Thompson and Chris Tong.