In 1996, two companies, Patersons HR and Payroll Solutions, founded a venture called CloudPay to provide payroll and payment services to corporate clients. CloudPay quietly grew over the next few decades, adding workflow automation features to keep up with upstart competitors.
CFO Andy Thompson assured TechCrunch that the company is still growing.
Thomson claims CloudPay handles payroll processing for 280 companies including Visa, Wayfair, Wells Fargo, Expedia and the London Stock Exchange, and processes more than 3 million payslips annually in more than 130 countries.
“CloudPay is doing $125 million in contracted revenue,” Thompson said. “It’s more than doubled its revenue over the last three years.”
Now, the company has secured a new $120 million funding round led by Blue Owl Capital to continue accelerating its growth. Thomson said the round, which brings the total raised to $228 million, values CloudPay “significantly higher” than its last round in October 2022.
“In a constantly changing environment, customer expectations are also changing,” he said. “They expect more. In the world’s on-demand culture, traditional payrolls are not always adequate, so we have evolved payroll to meet new demands. Compliance and laws have also become more complex and diverse across countries.”
Today, CloudPay offers a range of global payroll, payroll disbursement and on-demand payroll services. Payroll professionals get real-time reports and customizable dashboards, while finance teams can choose localized funding and payroll options for their employees.
The payroll software race is not getting any less intense. There are startups like Y Combinator-backed Workpay, Symmetrical.ai, Payroll Integrations, and Skuad, which was acquired by fintech Payoneer this week. In fact, my colleague Mary Ann has written that it seems like almost every startup wants to help people get paid these days.
CloudPay, which has 1,350 employees and offices in Raleigh, Budapest, Shanghai, Costa Rica and Barcelona, plans to use the recent funding to bring on new integration partners and invest in automation and AI technologies.
“CloudPay’s technology innovation has been a major focus for us this year, and this funding will allow us to accelerate our timeline,” Thompson said. “We expect to make an AI announcement later this year.”
Rho Capital Partners, Olayan Group, and Hollyport Capital also contributed to CloudPay’s latest investment.
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