In 1996, two companies, Patersons HR and Payroll Solutions, formed a venture called CloudPay to provide payroll and payments services to enterprise clients. Since its inception, CloudPay has grown quietly over the next several decades, adding workflow automation features to maintain pace with upstart rivals.
Growth and Expansion
CloudPay’s Chief Financial Officer (CFO), Andy Thomson, assures TechCrunch that the company is still growing rapidly. According to Thomson, CloudPay is handling the payroll processes of 280 firms, including prominent companies such as Visa, Wayfair, Wells Fargo, Expedia, and The London Stock Exchange. Additionally, the company processes more than 3 million pay slips a year in over 130 countries.
"We’re sitting at contracted revenue of $125 million," Thomson said. "Over the last three years, we have more than doubled revenue."
New Funding Round
CloudPay has landed a new $120 million funding round led by Blue Owl Capital to continue accelerating its growth. This funding round brings CloudPay’s total raised to $228 million, valuing the company significantly higher than its previous valuation in October 2022.
"In an environment of constant change, customer expectations are shifting, too," Thomson said. "They expect more. In the world’s on-demand culture, traditional payroll doesn’t always fit, so we’ve evolved payroll to fit new demands."
Compliance and Legislation
CloudPay offers a range of global payroll, salary payments, and pay-on-demand services. Payroll professionals get real-time reports and customizable dashboards, while finance teams get a choice of funding and pay options localized to employees.
However, compliance and legislation have become increasingly complex and varied country-to-country. CloudPay has evolved its services to address these challenges, ensuring that clients can navigate the complexities of payroll management.
Competition in the Payroll Software Market
The competition for payroll software hasn’t gotten any less stiff. There are startups like Y Combinator-backed Workpay, Symmetrical.ai, Payroll Integrations, and Skuad, which was just acquired by fintech company Payoneer. In fact, it seems that practically every startup these days wants to help people get paid.
Investing in Automation and AI Tech
With a workforce of 1,350 people and offices across Raleigh, Budapest, Shanghai, Costa Rica, Barcelona, and elsewhere, CloudPay plans to put the proceeds from its latest fundraise toward bringing on new integrated partners and investing in automation and AI tech.
"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 AI announcements later this year."
Rho Capital Partners, The Olayan Group, and Hollyport Capital Contribute
The new tranche also includes contributions from Rho Capital Partners, The Olayan Group, and Hollyport Capital.
What’s Next for CloudPay?
With its latest funding round, CloudPay is poised to accelerate its growth and innovation. The company will continue to invest in automation and AI tech, making it an even more attractive solution for clients seeking global payroll, salary payments, and pay-on-demand services.
As Thomson noted, "We’re not just a traditional payroll provider; we’ve evolved to meet the changing demands of our clients."
About CloudPay
CloudPay is a leading provider of global payroll, salary payments, and pay-on-demand services. With a workforce of 1,350 people and offices across multiple locations, CloudPay offers real-time reports, customizable dashboards, and localized funding options to its clients.
The company has experienced significant growth over the past few years, with revenue more than doubling in the last three years. Its commitment to innovation and customer satisfaction has made it a leader in the payroll software market.
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