In 1996, Patersons HR and Payroll Solutions formed a joint venture, CloudPay, to offer payroll and payment services to enterprise clients. Over the decades, CloudPay has steadily expanded its services, incorporating workflow automation to keep up with emerging competitors.
Current Operations and Revenue CloudPayÂ
CloudPay, led by CFO Andy Thomson, continues to thrive. Thomson reported that the company manages payroll for 280 firms, including major names like Visa, Wayfair, Wells Fargo, Expedia, and The London Stock Exchange. The company processes over 3 million pay slips annually across 130 countries. With a contracted revenue of $125 million, CloudPay has more than doubled over the past three years.
Recent Funding and Valuation
CloudPay has recently secured $120 million in funding led by Blue Owl Capital, bringing its total funding to $228 million. This latest round values the company significantly higher than its previous funding round in October 2022. The funds are set to drive further growth and innovation for the company.
Evolving Payroll Needs and Services CloudPayÂ
In response to shifting customer expectations and increasing complexity in compliance and legislation, CloudPay has evolved its offerings. The company now provides a comprehensive global payroll, salary payments, and pay-on-demand services. Payroll professionals benefit from real-time reports and customizable dashboards, while finance teams enjoy various funding and payment options tailored to local needs.
Competitive Landscape
The payroll software market remains highly competitive, with numerous startups entering the space. Companies such as Y Combinator-backed Workpay, Symmetrical.ai, Payroll Integrations, and recently acquired Skuad (by fintech Payoneer) are notable competitors. The influx of new startups highlights the growing demand for payroll solutions.
CloudPay Future Plans and Investments
With a workforce of 1,350 and offices in Raleigh, Budapest, Shanghai, Costa Rica, Barcelona, and other locations, plans to use its latest funding to onboard new integrated partners and invest in automation and AI technologies. Thomson indicated that CloudPay’s focus on technological innovation will continue, with expectations for AI-related announcements later this year.
Contributors to the Latest Funding Round of CloudPayÂ
Rho Capital Partners, The Olayan Group, and Hollyport Capital also participated in CloudPay’s recent funding round, supporting the company’s ongoing expansion and development efforts.
