PayFit Raises $276M to Transform HR Technology

PayFit, a payroll and human resources management solution for small- to medium-sized businesses (SMBs), has raised 254 million euros ($276 million), a record-breaking amount for the Paris-based firm, the company announced on Thursday (Jan. 6).

The funding round was led by General Atlantic, the New York-based growth equity firm, with participation from existing investors Eurazeo, Bpifrance and Accel Ventures.

Now valued at 1.82 billion euros ($2 billion), the startup said its mission is to strengthen its position in the markets it serves in France, Spain, Germany and the United Kingdom.

PayFit said it will use the money to recruit more staff, accelerate the development of innovative new products and boost its market share in Europe.

Since its launch in 2015, the French company has sought to assist SMBs with complicated HR and payroll work through Software-as-a-Service. It has more than 6,000 clients, and raised 179 million euros ($202 million).

Last year, PYMNTS reported PayFit acquired 90 million euros ($108 million) in Series D funding to further its aim to streamline payroll and HR management for SMBs. BPI France, Large Venture and Eurazeo Growth headed up the investment round, which saw participation from its early investors including Frst, Accel and billionaire Xavier Niel.

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At the time, the company said the infusion of new cash will let the company add 250 employees and keep building its HR offerings.

In the Thursday (Jan. 6) announcement, PayFit said it plans to scale up from more than 700 employees to more than 1,000 within the next year. Expansion of the team has included key senior leadership hires across critical business functions spanning technology, finance, operations and more.