OnPay Secures Over $100 Million to Expand Payroll Solutions
Deal News | Jan 07, 2025 | Carrick Capital Partners LLC
OnPay, a key player in the payroll, HR, and benefits solutions sector, has successfully raised over $100 million in funding. This financial boost includes a $63 million Series B round led by Carrick Capital Partners with additional support from AB Private Credit Investors and a debt facility from MC Credit Partners. This additional capital signifies a transformative phase for OnPay, aimed at scaling their operations, enhancing product development, expanding customer support, and accelerating their market strategy. Jim Madden, Co-CEO of Carrick Capital Partners, highlighted OnPay's potential to address the growing needs of small and mid-sized businesses (SMBs) through its robust product offerings. FT Partners acted as the exclusive advisor for OnPay in this round. OnPay continues to extend its reach across the United States, serving more than 25,000 SMBs with award-winning payroll and HR solutions.
Sectors
- Fintech
- Private Equity
- Human Resources Technology
Geography
- United States – OnPay is based in Atlanta and serves small to medium-sized businesses across the United States.
- Atlanta – Headquarters of OnPay, marking the central location of operations and decision-making.
Industry
- Fintech – The article focuses on OnPay, which offers financial technology solutions such as payroll and HR management.
- Private Equity – Carrick Capital Partners, a private equity firm, plays a significant role by leading the Series B funding round.
- Human Resources Technology – As OnPay specializes in HR and payroll services, it falls under this industry category, highlighting technological solutions for HR management.
Financials
- $63 million – The amount raised in the Series B funding round led by Carrick Capital Partners.
- Over $100 million – The total funding secured by OnPay, also including contributions from AB Private Credit Investors and a debt facility by MC Credit Partners.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| OnPay | Target Company | Company | A leading provider of payroll, HR, and benefits solutions for small to medium-sized businesses. |
| Carrick Capital Partners | Lead Investor | Company | Private equity firm leading the Series B funding round for OnPay. |
| AB Private Credit Investors | Investor | Company | Part of AllianceBernstein, participating in the Series B funding round through its middle market private capital platform. |
| MC Credit Partners | Debt Facility Provider | Company | Provider of a debt facility as part of OnPay’s funding package. |
| FT Partners | Financial Advisor | Company | Served as the exclusive strategic and financial advisor to OnPay for the equity financing. |
| Jesse Burgess | CEO | Person | CEO of OnPay, overseeing the company’s expansion and funding efforts. |
| Jim Madden | Co-CEO | Person | Co-CEO of Carrick Capital Partners, involved in the funding round and strategic direction for OnPay. |