PayFit raises $107 million for its payroll and HR platform
French startup PayFit has raised a $107 million series D funding round (90 million). Eurazeo Growth and Bpifrance's Large Venture fund are leading today's round. Existing investors Accel, Frst and Xavier Niel are participating once again.
PayFit has been building a payroll and HR software-as-a-service platform. It lets you manage your payroll from a web browser and automate as many steps as possible. For instance, you can configure automate payslip generation, export your payroll data to your accounting software and get a list of payments you need to make when it comes to pensions, health insurance, etc.
Given that it's a software-as-a-service platform, everything remains up to date. For instance, if there are some regulatory changes that require some adjustments, PayFit can update its platform so that you remain compliant from day one without having to think about it.
Over time, the startup has expanded beyond payroll to tackle a bigger chunk of the HR stack. Each employee gets its own PayFit login to access their payslips. But the company doesn't stop there as you can request time off and enter how much time you've worked this week if you're paid on an hourly basis. PayFit automatically notifies the manager for approval.
PayFit can also become your central repository for expenses and receipts. The company already has everyone's bank information, which makes it easier to transfer money back to an employee for a cash expense.
Employees can also view the company's directory and management chain from PayFit. The HR department can set up an onboarding flow in PayFit so that employees can request a computer, a badge, and enter personal information as soon as they join the company.
If you work for a big company that uses something like Workday, all of this probably sounds familiar. But PayFit targets small and medium companies that don't want to sign expensive contracts with enterprise companies. It has attracted 5,000 clients that employ 100,000 employees overall - that's an average of 20 employees per company. Some of the biggest clients include Revolut, Starling Bank and Treatwell.
The company is currently live in France, Germany, Spain, Italy and the U.K. It currently has 550 employees and it plans to hire another 250 employees in 2021 to support its growth.