OnPay, a startup providing payroll and HR solutions, has secured over $100 million in new funding, including a $63 million Series B round led by Carrick Capital Partners. This significant investment will enable the company to scale its capabilities, further invest in product development, and accelerate its go-to-market strategy.

The funding is a testament to the growing demand for HR payroll software, which is expected to reach over $55 billion by 2031, up from $23 billion in 2021, according to Allied Market Research. OnPay has positioned itself to capitalize on this trend, providing businesses with apps to assist with payroll deductions and taxes, manage teams, and select from health insurance, workers' comp, and 401k plans for their workforce.

OnPay's products connect with a range of third-party HR and compliance tools, enabling customers to sync data between apps, like accounting information. This integration has proven to be a key factor in the company's success, as businesses increasingly adopt HR and payroll software to tackle paperwork-related slowdowns. According to a recent survey from Business.com, 50% of small business HR professionals use cloud-based software to manage HR functions, with 69% of respondents reporting reduced payroll processing time and 25% improved legal compliance.

Jesse Burgess, who founded OnPay in 2011, initially developed workflow automation tools to streamline tasks for his family's payroll business. He later recognized the opportunity to bring these tools to other corporate clients, and OnPay was born. Today, the company has raised over $165 million in equity and debt, with AB Private Credit Investors, the middle market private capital platform of AllianceBernstein, also participating in the Series B round.

The new funding will enable OnPay to expand its offerings and drive impactful growth for businesses that rely on it for payroll and HR. "This funding represents a transformative milestone for OnPay and is a testament to the hard work and dedication of our team," Burgess said in a statement. "We're excited to expand our capabilities and drive impactful growth for businesses that rely on us for payroll and HR."

As the HR payroll software market continues to grow, OnPay's latest funding round positions the company for continued success and expansion. With its scalable solutions and commitment to product development, OnPay is well-equipped to meet the evolving needs of businesses and capitalize on the growing demand for HR payroll software.