ZenPayroll has secured $20 million for its Series A financing round with a valuation of over $100 million, TechCrunch reported.
General Catalyst Partners led the round for the startup that provides a user-friendly cloud-based payroll application. Kleiner Perkins Caufield & Byers also participated in the financing. For its previous fundraising, ZenPayroll obtained $6.1 million from backers that included Salesforce, Data Collective, Google Ventures, Aaron Levie, Drew Houston and others, the report said.
ADP and Paychex are the dominant players in the space that ZenPayroll is already disrupting. The startup's cloud-based SaaS provides a more streamlined process, enabling users to have payroll tax calculations and fees automated. It also gives employees with direct deposit even as it facilitates for paperless filing of all government documents related to payroll. Singing up on ZenPayroll is quick and takes only about 10 minutes, the report said.
Small enterprises that take care of their own payroll will find ZenPayroll to be of use. The platform also features that allow employees to donate to a charitable cause they believe in from their paycheck. It also provides employers with pay slips that are visually informative, allows self-onboarding for employees and "autopilot" payroll and spot bonuses. An API was rolled out by the firm last year which enabled third party applications to send information such as working hours, bonuses, tips and commissions received and reimbursements straight to the payroll app, removing the need to import the data manually, the report said.
ZenPayroll processed annual payroll worth $150 million last summer. However, this figure has already risen to $400 million. The platform is mostly being used by businesses that have 100 employees at the most. Law firms, bakeries, hotels, flower shops, dental offices and restaurants, among others, are among the enterprises that use ZenPayroll. Its primary growth driver comes through word of mouth recommendations, the report said.
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