CloudPay Raises US$120m to Bolster Global Payroll Tech
Provider of global payroll and payment solutions, CloudPay, has secured US$120m in funding led by Blue Owl Capital. Existing shareholders Rho Capital Partners, The Olayan Group and Hollyport Capital also participated in the round.
For CloudPay, this investment enables it to strengthen its product offerings and technology solutions, with a focus on deploying artificial intelligence (AI) for data management and improving connectivity through application programming interfaces (APIs).
The fintech has been operating for three decades, CloudPay, and currently serves over 280 corporate clients across more than 130 countries. The company's global workforce has grown to over 1,350 employees since 1996.
Dr Roland Folz, CEO of CloudPay, says: “Global payroll is a growing market providing tremendous opportunities for CloudPay and this funding gives us the flexibility to accelerate our journey.”
The company plans to use the capital to enhance its payroll and payment offerings, which Dr Folz states “resonates very well with our esteemed global clientele”.
Technological advancements
CloudPay intends to invest in automating and scaling its processes, as well as improving connectivity within its ecosystem of global payroll, payment and human capital management (HCM) partners.
The fintech’s integrated portfolio of payroll, payments and pay-on-demand solutions are delivered through a single cloud-based platform that can be deployed globally. This unified approach aims to transform pay processes, making them faster and more efficient.
The new funding will support the development of AI-driven data management solutions, which are expected to increase efficiency and accuracy in payroll processing for multinational corporations.
Kurt Tenenbaum, Managing Director and Co-Head of the Menlo Park Office at Blue Owl Capital, adds: “We have been impressed with CloudPay's growth, experienced international leadership team, and customer commitment. We are excited about what the future holds for CloudPay and are proud to support their long-term growth strategy.”
CloudPay's recent growth has outpaced the market average, according to the company. This expansion reflects the increasing demand for sophisticated, global payroll solutions among multinational corporations.
It has also been fuelled by recognition of its quality of service – being awarded as a Major Contender globally and a Star Performer in Europe, the Middle East and Africa (EMEA) in the Everest Group Multi-Country Payroll Solutions PEAK Matrix Assessment 2023.
Dr Folz adds: “With the support of Blue Owl Capital, we are strengthening our capital base while continuing to invest in our state-of-the-art solutions for global organisations and their employees worldwide.”
Raising funds in a challenging environment
The funds raised by CloudPay mark an impressive feat in a market faced with a wider investment slump.
This slump comes after 2021, in which 20% of all venture capital investments globally went into a fintech.
According to Hugh Son, author of The fintech reckoning is here and CNBC reporter, ‘copycat fintechs’ are hoping to see the same success as original market players – diluting the market and representing a far less palatable investment option for venture capitalists.
This gives further testament to CloudPay’s credentials and prestige in the payroll solutions market - as it looks to further enhance its services with the latest in AI innovations and API connectivity.
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