Anika Begay
In 1996, two companies, Patersons HR and Payroll Solutions, formed a company called CloudPay to provide payment and payroll services to corporate clients. CloudPay has grown quietly over the next few decades, adding workflow automation capabilities to keep pace with emerging rivals.
It continues to grow, CFO Andy Thomson assures TechCrunch.
Thomson says CloudPay powers the payroll processes of 280 companies, including Visa, Wayfair, Wells Fargo, Expedia and The London Stock Exchange, processing more than 3 million payrolls annually in over 130 countries.
“CloudPay is sitting at $125 million in contract revenue,” Thomson said. “We’ve more than doubled that revenue over the last three years.”
Now, the company has raised a new $120 million funding round led by Blue Owl Capital to continue accelerating that growth. Bringing the total raised to $228 million, the round values CloudPay “significantly higher” than the company’s last round in October 2022, Thomson said.
“In an ever-changing environment, customer expectations are changing,” he said. “They expect more. In the on-demand global culture, the traditional payroll doesn’t always fit, so we’ve evolved the payroll to accommodate new needs. Compliance and legislation have also become more complex and varied from country to country.”
Today, CloudPay offers a range of global payroll, salary payments, and on-demand payments services. Payroll professionals get real-time reporting and customizable dashboards, while finance teams have a choice of localized employee financing and payment options.
The competition for payroll software hasn’t gotten any less fierce. There are startups like Y Combinator-backed Workpay, Symmetrical.ai, Payroll Integrations, and Skuad, which was acquired just this week by fintech Payoneer. In fact, my colleague Mary Ann wrote about how it seems like virtually every startup these days wants to help people get paid.
With a workforce of 1,350 and offices in Raleigh, Budapest, Shanghai, Costa Rica, Barcelona and elsewhere, CloudPay plans to use the proceeds from its latest fundraise to attract new integrated partners and invest in automation and artificial intelligence technologies.
“CloudPay’s innovation in technology has been a significant focus for us this year, and with this round of funding we can accelerate our timeline,” Thomson said. “We expect to make announcements on AI later this year.”
Rho Capital Partners, The Olayan Group and Hollyport Capital also contributed to the new tranche of CloudPay.
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