Zenefits, HRD’s paperwork killer, raises $ 500 million
Put an end to administrative tasks and paperwork in human resources. It is the ambition of Zenefits, an American company that has just raised 500 million dollars (440.9 million euros) from Fidelity Management and Research Company, as main investors, alongside Insight Venture Partners, Founders Fund, Khosla Ventures, and Sound Ventures. With this new operation, the company is valued at 4.5 billion dollars (approximately 3.9 billion euros). She had already realized a funding round of $ 66 million in 2014 with Andreessen Horowitz.
Based in San Francisco, Zenefits publishes a human resources management platform in Saas mode. This allows HRDs to group together in one place the management of payroll, social benefits, stock options or even professional mutuals, agreements having been concluded with several insurers. Regarding new recruitments for example, the solution simplifies the process with the electronic signature of new recruits, the collection of banking and fiscal data, all of which is saved in the cloud.
The objective: to automate as much as possible the daily administrative tasks of HRDs so that they can concentrate more on longer-term missions. ” There are millions of small businesses across the country that have wasted countless hours each year juggling multiple human resource systems and outdated technologies. We don’t just eliminate red tape; we eliminate real labor – making it easier for small businesses to focus on management and growth Says Parker Conrad, co-founder and CEO.
On the economic model side, Saas software is free for businesses. Zenefits is remunerated by acting like a broker who takes a commission if a company takes out insurance for its employees through its platform. There lies the key to its model, with employees subscribing mainly to insurance through their employers across the Atlantic. With this positioning, the company says it hopes to reach $ 100 million in annual revenue by the end of its fiscal year this year.
The start-up ensures that its solution is used by more than 10,000 medium and mid-size companies in the United States. Among the major accounts that have subscribed to its offers, we find in particular Twitch, the online video game session broadcasting platform bought by Amazon for just under $ 1 billion last year.
The objectives of the Start-up
Founded in 2013 by Parker Conrad and Laks Srini, Zenefits wishes, with this new investment, to accelerate the marketing of its offers to the 5 million American companies which have between 2 and 1,000 employees. The company also wants to back up its offer with the launch of new products. It must indeed face competition from many players such as CheckPoint HR or Workday.
Creation date : 2013
Founders: Parker Conrad and Laks Srini
Sector: Human Resource Management
Funding: $ 66 million in 2014, $ 500 million in 2015
Competitors: CheckPoint HR, Workday …