PayFit becomes latest unicorn after $289m raise

If there was ever a question about the profitability of targeting small and medium-sized enterprises (SMEs), the success of companies like Personio and Justworks, which both focus on smaller businesses, has surely answered them.

The latest SME-focused company to unicorn is PayFit. The France-based payroll and HR software company currently ensures 150,000 people (through 6,000 clients) get paid on time and correctly.

Part of the selling point for this software is that it lets customers manage payroll from a web browser and automate numerous steps. This means that less-skilled parts of the payroll function can operate the tool effectively.

Additionally, through its software as a service (SaaS) offering the company can be adopted with greater ease than other more tricky payroll software.

One of the most surprising elements of the product is that it goes beyond payroll. PayFit also has HR functions that enable staff to book time off, track expenses, and manage employee onboarding. At the moment, the software is used in France, Spain, Germany, and the UK.

The Series E investment in PayFit

All of these qualities caused General Atlantic to lead a substantial round of Series E funding.

General Atlantic is supported by existing investors Eurazeo, Bpifrance’s Large Venture Fund, and Accel in a €254 million investment. As a result, PayFit has now reached a valuation of $2.1 billion (€1.82 billion), transforming it into HR tech’s newest unicorn.

With this backing, PayFit intends to hire 400 additional staff to improve the software, customer service, and its market share in Europe.

Firmin Zocchetto, CEO and co-founder of PayFit, discussed the plans for the company: “PayFit’s expansion beyond France into the UK, Spain, and Germany demonstrated further validation of our innovative offering and our capacity to scale up.

“As we look ahead, we plan to use these new funds to deepen our presence in our existing markets, where we have significant growth potential.

“At PayFit, we are proud to have built a company with strong foundations, where people are happy to work and that can have a real impact on our clients. This Series E funding will allow us to maintain the rapid growth we have achieved since our founding.”

Chris Caulkin, managing director and head of technology for EMEA at General Atlantic, was also looking forward to the progress PayFit can make: “PayFit has built an innovative and disruptive product supporting the payroll and HR management needs of SMBs across Europe.

“We see great opportunities ahead for the company as it extends its product offering and continues to capture market share in France and across Europe. We are delighted to support PayFit and its management team in this next chapter of growth.”