UK-based Omnipresent announced a USD $15.8 million Series A round of VC for its global employee of record (EOR) solution. Omnipresent becomes the employer of record (EOR) for its clients that are hiring remote employees in a reported 150 countries. Their value proposition is to keep companies compliant with local regulations and tax laws, mitigating risk while saving the customer time in administrivia and allowing them to focus on their business.
It’s a model that works well for small businesses that don’t have the infrastructure or resources to support global internal operations and keep up with regulatory compliance. While we haven’t reviewed the pricing for omnipresent, returns start to diminish on these solutions as companies grow. For example, the very similar professional services organization (PEO) model in the US starts to lose its ROI between 50 and 100 employees based on cost in comparison to other solutions available for employers at that size.
The big question for buyers to ask: Do they indemnify the client from risk on compliance?
Omnipresent enters a market with some competition with firms like Velocity Global and Papaya Global.
The HCM category saw USD $2.59 billion of VC investment in 2020. Payroll tech saw investment of $206 million. $5 billion was invested across all HR tech categories globally in 2020.