Payroll startup OnPay secures over $100M in funding to transform HR and benefits for small businesses

It’s been four years since we last covered OnPay, the Atlanta-based tech startup that offers payroll, HR, and benefits solutions to small and medium-sized businesses across the United States. Since then, the company has more than doubled its client base, expanding from 10,000 customers in 2020 to over 25,000 today.

This impressive growth has caught the attention of investors, culminating in a major funding milestone. OnPay recently announced it has raised over $100 million, including a $63 million Series B funding round led by Carrick Capital Partners. Additional support came from AB Private Credit Investors, the middle-market private capital platform of AllianceBernstein, existing investors, and a debt facility from MC Credit Partners.

The funding will fuel OnPay’s plans to scale operations, enhance product development, expand partnerships and integrations, grow customer success teams, and accelerate its go-to-market initiatives. This investment underscores the rising demand for comprehensive payroll and HR solutions tailored to SMBs.

A Family Legacy Transformed into a Tech Powerhouse

Founded in 2011 by Jesse Burgess, OnPay emerged from a family-run payroll business. After joining the company in 2007, Burgess focused on modernizing operations to improve efficiency and reduce frustrations for its payroll clerks. In 2015, OnPay officially spun off from the legacy business to scale its cloud-based payroll platform.

Since then, OnPay has built a reputation for excellence. It has been rated “excellent” by PC Magazine and received top marks from CPA Practice Advisor, Motley Fool, and clients on Capterra. The startup has also earned awards for its intuitive interface and exceptional customer service.

A Vision for Growth

“This funding represents a transformative milestone for OnPay and is a testament to the hard work and dedication of our team,” said Jesse Burgess, CEO of OnPay. “We’re excited to expand our offerings and drive impactful growth for businesses that rely on us for payroll and HR.”

OnPay’s mission is to equip SMBs with accessible payroll and HR solutions that simplify compliance, streamline operations, and support their teams. This approach resonates with investors, including Carrick Capital Partners. “OnPay’s superior product and unique service approach position the company to meet the growing demands of SMBs,” said Jim Madden, Co-CEO of Carrick Capital Partners.

With over $100 million in new funding and a rapidly expanding customer base, OnPay is poised to further solidify its role as a leader in payroll and HR solutions for small and medium-sized businesses.

OnPay Founder, Jesse Burgess