Jesse Burgess, founder of OnPay, drew inspiration for the company from his family’s payroll business. In 2007, while working there, he identified inefficiencies caused by repetitive tasks that slowed down payroll processing. To address these challenges, he created workflow automation tools, paving the way for OnPay, officially launched in 2011.
OnPay provides an integrated suite of tools for payroll, HR, and benefits management. The platform simplifies payroll deductions, tax compliance, team management, and benefits administration, including health insurance, workers’ compensation, and retirement plans. It also integrates with third-party HR and compliance software, ensuring seamless data synchronization across platforms, such as accounting tools.
The demand for HR and payroll software has surged as businesses seek to eliminate manual processes and improve operational efficiency. According to a Business.com survey, 50% of small business HR professionals now utilize cloud-based solutions, with 69% reporting faster payroll processing and 25% citing enhanced legal compliance. Allied Market Research predicts the global HR payroll software market will grow from $23 billion in 2021 to over $55 billion by 2031.
OnPay is leveraging this industry growth, recently announcing a $100 million funding milestone. The funding includes a $63 million Series B round led by Carrick Capital Partners and a debt facility from MC Credit Partners, though the latter’s amount was not disclosed. AB Private Credit Investors, part of AllianceBernstein, also participated in the Series B. This round brings OnPay’s total funding to over $165 million in equity and debt.
The funds will be used to expand OnPay’s features, enhance its product offerings, and accelerate its market expansion. “This funding represents a transformative milestone for OnPay and is a testament to the hard work and dedication of our team,” said Burgess. “We’re excited to grow our offerings and deliver impactful results for businesses that rely on us for payroll and HR solutions.”
Based in Atlanta, OnPay’s rapid growth reflects the increasing reliance on technology to simplify administrative tasks. The company aims to help businesses focus on strategic goals while ensuring compliance and operational efficiency.
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Jessica Lee
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