Employment Hero raises $181M AUD at $1.25B AUD valuation, acquires KeyPay

Human resources platform Employment Hero announced today it has raised $181 million AUD (or about $129 million USD), putting it at unicorn valuation in Australian dollars of $1.25 billion (or about $890 million USD). The round was led by returning investors Seek Investments, with participation from OneVentures, AirTree Ventures and other shareholders.

The Sydney, Australia-based company also said it has acquired KeyPay, a workforce management and payroll platform that will remain as an independent brand and get investment from Employment Hero to grow its team.

Employment Hero’s platform, which offers a full suite of human resources management tools, including payroll and benefits, is now used by more than 80,000 SMEs, representing a total of 750,000 employees. The company itself has a team of more than 500 full-time employees based around the world. Employment Hero’s last funding announcement was in July 2021, when it announced a $140 million AUD Series E led by Insight Partners at a valuation of $800 million AUD. It has now raised a total of $220 million AUD.

KeyPay was founded in 2010 by Phil Bernie, Richard McLean, Paul Duran and Kristian Reynolds, and is active in Australia, New Zealand, Singapore, Malaysia and the United Kingdom, which Employment Hero said will help it grow in those markets. Bernie will stay on as KeyPay’s managing director, while Duran will remain its chief technology officer. Employment Hero’s co-founder and CEO Ben Thompson was a seed investor in KeyPay in 2012.