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OnPay, a leading provider of payroll, HR, and benefits solutions headquartered in Atlanta, Georgia, announced the successful closure of a funding round exceeding $100 million. The round was led by Carrick Capital Partners, with significant participation from AB Private Credit Investors, the middle market private capital platform of AllianceBernstein, and a debt facility provided by MC Credit Partners.
Company Background
Founded in 2011, OnPay has been a one-stop shop for payroll, HR, and benefits solutions that cater to more than 25,000 small and medium-sized businesses (SMBs) across the United States. The company’s mission is to provide modern, accessible tools that enable SMBs to manage compliance, streamline operations, and support their teams effectively. In 2024, OnPay was named PCMag Editors’ Choice, reflecting its commitment to delivering high-quality services.
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Funding Details
The new round of funding includes a $63 million Series B investment that is led by Carrick Capital Partners. This investment comes with additional contributions from both AB Private Credit Investors and other existing investors. The round also involves a debt facility from MC Credit Partners, which brought the total raised capital to more than $100 million.
Strategy Outcomes Post Funding
With the injection of new capital, OnPay has outlined several strategic initiatives to further grow and enhance its service offerings as follows:
- Product Development: The company will make significant investments in furthering the advancement of its capabilities, introducing new features, and improving existing functionalities to better serve the evolving needs of SMBs.
- Expanding Partnerships and Integrations: OnPay is looking to expand its ecosystem through new partnerships and integrations with other third-party applications, giving users a seamless and more holistic experience.
- Customer Success Teams: The company plans to expand its customer success teams to ensure the best service and support for customers, allowing for more personalized and responsive assistance for its growing client base.
- Acceleration of Go-to-Market Strategy: The funding will help scale marketing and sales efforts so that OnPay can get to a larger audience more quickly and penetrate new markets more deeply.
The need for efficient payroll and HR solutions continues to grow with the increasing number of SMBs looking to streamline and maintain compliance over higher regulatory requirements. OnPay’s platform caters to the needs with a simple and powerful interface that rivals that built for the largest companies. The latest funding deals into the rapidly growing market for turnkey payroll software and puts OnPay in the right place to take advantage of the trend.
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Investor Views
Co-CEO of Carrick Capital Partners, Jim Madden, said, “OnPay’s superior product and unique service approach position the company to meet the growing demands of SMBs.” This is the sentiment of the investors who believe OnPay can deliver value and drive growth in the competitive payroll and HR solutions market.
Future Outlook
With this round of funding providing the much-needed significant capital injection, OnPay is now ready to scale its growth trajectory and become even more firmly established as a leader in payroll and HR solutions. Planned investments in product development, partnerships, customer support, and market expansion are likely to further enable the company to service SMBs with efficiency and ensure operational compliance across different industries.