France-based Payfit announced a USD $107 million Series D round of VC funding for its SMB-focused payroll solution. This brings its total raised to $208.4 million.
Payfit announced 40% growth in 2020 and total of 5,000 SMB customers with an average of 20 employees each. It’s unclear whether the growth metric is based on revenue or customer count.
Payroll is an HR technology category that investors like. It’s one of the few “must have” solutions in the HR tech stack for employers. The SMB segment is also the largest segment in both number of firms and lives under management. Firms that can focus, execute, and scale product and service have a significant market opportunity, even as the payroll and HCM categories for the SMB continue to see more saturation.
The payroll category saw $206 million of the $5 billion invested globally in HR technology during 2020. Details on the investments by category are in our latest full report.