CloudPay, a global payroll services provider, has secured $120 million in new funding, marking a significant milestone in its ongoing expansion. The funding round, led by Blue Owl Capital, brings CloudPay’s total capital raised to $228 million. According to CFO Andy Thomson, this latest round values the company “significantly higher” than its previous valuation in October 2022.
Founded in 1996 as a venture between Patersons HR and Payroll Solutions, CloudPay has steadily grown its client base over the decades. Today, the company handles payroll processes for 280 firms, including major names like Visa, Wayfair, Wells Fargo, Expedia, and The London Stock Exchange. CloudPay processes over 3 million pay slips annually across more than 130 countries, supporting its clients with services tailored to the complexities of global payroll compliance.
Thomson highlighted CloudPay’s rapid growth, noting that the company’s revenue has more than doubled over the past three years, currently sitting at $125 million in contracted revenue. The newly raised funds will be used to further accelerate this growth, with a focus on bringing on new integrated partners and investing in automation and AI technologies.
In the highly competitive payroll software market, CloudPay faces challenges from various startups, including Y Combinator-backed Workpay, Symmetrical.ai, Payroll Integrations, and Skuad, the latter of which was recently acquired by fintech Payoneer. Despite the competition, CloudPay continues to innovate, offering global payroll, salary payments, and pay-on-demand services that provide real-time reports and customizable dashboards for payroll professionals and finance teams.
With a workforce of 1,350 employees and offices across Raleigh, Budapest, Shanghai, Costa Rica, Barcelona, and other locations, CloudPay is positioning itself to meet the evolving demands of its clients. Thomson emphasized the importance of technology in CloudPay’s strategy, stating that the company plans to accelerate its timeline for AI advancements, with announcements expected later this year.
Additional contributors to CloudPay’s latest funding round include Rho Capital Partners, The Olayan Group, and Hollyport Capital.
