Zenpayroll has received $60 million funding in a round led by Google Capital. Other investors in this Series B funding include Emergence Capital Partners, General Catalyst, Google Ventures, Kleiner Perkins Caulfield & Byers, and Ribbit Capital.
The San Francisco-based company offers a cloud-based system to automate tax calculations and payroll payments. 10,000 small businesses already use ZenPayroll’s web-based services.
“We are proud to welcome Google Capital to the ZenPayroll community. Not only does Google exemplify the power of technology to improve people’s lives, they also share our core belief that people are the most important part of every business,” ZenPayroll’s CEO and co-founder Joshua Reeves said.
Google Capital which is known to invest in more established businesses made an exception with startup Zenpayroll. To this Laela Sturdy, a partner at Google Capital, told Business Insider “Josh and team have built an incredible business and a product that customers love that can solve a huge pain point for millions of businesses,”. About the Series B round she said, “We’re looking for growth-stage companies that have Google-sized aspirations in their industries, technology with huge long-term potential, and great management teams. ZenPayroll fits the bill across the board.
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ZenPayroll, which is valued at $560 million, says it processes billions of dollars in payroll annually, and by the end of this month, will work with businesses in every US state.
Zenpayroll offers a range of cloud based services like managing payrolls and employee accounts, aid with new hiring, contractor payments and 1099 forms, Tax filing, calculations and payment direct deposit, unlimited payroll runs, year-end W-2s and 1099s for $29 per month plus $4 per employee and other payroll related services.
Officially launched just two years back by Stanford graduates Joshua Reeves, Edward Kim, and Tomer London, Zenpayroll’s growth has been exceptional with revenue increasing by $400 million in just one year. “This is the fastest growing company we’ve seen in a few years,” says Laela Sturdy. She adds that while ZenPayroll will always continue to serve small businesses, there’s also a significant opportunity in providing simple services for larger businesses.
(image credit: Laurent Lebaux)