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Remote Work (Infrastructure)

Distributed workforces require new solutions for office operations, HR, payment, and more.

Overview

Not long ago, remote work was a disruptive new phenomenon of the modern working world; today, it’s a standard component of nearly every industry, and the traditional office space has been transported to anywhere in the world with access to a laptop and an internet connection. With the outbreak of the Covid-19 pandemic, the already trending remote work movement has accelerated sharply, subsequently altering the conversation around productivity best practices, team structures, workplace culture, and business models. Behind all of this is the robust and growing industry of online tools, technology, and infrastructure that powers the evolution of remote workforces across sectors.

What's driving this industry?
Market Sizing

Global market size for infrastructure tools could reach USD 2.0 - 4.3 billion by 2025

Conservative case

USD 2.0 Bn

Base case

USD 3.1 Bn

Expansion case

USD 4.3 Bn

USD billion0.511.522.533.544.5202020212022202320242025
View details

COVID-19 IMPACT

Several players report triple digit growth driven by demand for infrastructure tools amidst the pandemic:

  • Deel reported in August 2020 that it has recorded a 200% growth in its customer base and a 600% increase in revenue since the start of the pandemic.

  • Happeo reported that its platform recorded 280% year-over-year (YoY) growth in Q1 2020, with average daily messages sent on the platform increasing to 2.5 million from 500,000.

  • Winningtemp claims its usage grew 300% during the first three weeks of Covid-19 related lockdowns.

Driven by pandemic tailwinds, industry players, especially in the EoR/PEOs space receive significant financial backing:

  • Hibob raised USD 70 million in a Series B funding in December 2020.

  • ActivTrak raised USD 50 million in a Series B funding in November 2020.

  • Papaya Global raised USD 40 million in Series B funding in September 2020.

  • Remote raised USD 35 million in Series A funding in November 2020.

  • Gtmhub raised USD 30 million in a Series B funding in December 2020.

  • Deel raised USD 30 million in Series B funding in September 2020.

  • Winningtemp raised USD 18 million in Series B funding in October 2020.

View detail

Market Mapping


A majority of the incumbents feature in the integrated HRM, payroll, and benefits as well as the integrated performance and engagement segments. This includes large players such as Workday, SAP, Paycom, and Paylocity. With a handful of startups in the growth stage, Microsoft is the only incumbent in the intranet segment. The pure play payroll and benefits segment is occupied by CloudPay and Clune Technology Group and mostly includes early-stage disruptors.

Many disruptors in the integrated HRM, payroll, and benefits segment are quite mature and, therefore, a large contingent is in the growth stage. The integrated performance and engagement segment features the largest group of seed-stage companies, as the use of cloud-based employee engagement and performance software has received increased attention since the Covid-19 pandemic. Meanwhile, the EOR/PEO segment has the smallest number of startups that are primarily in the growth stage offering contingent workforce management solutions.

Incumbents
Growth
Early
Seed
Pre-Seed
Integrated HRM, Payroll, and Benefits Platforms
?
EoR/ PEOs
?
Integrated Performance and Engagement Platforms
?
Pure Play Engagement Platforms
?
Pure Play Payroll and Benefits Platforms
?
Intranet Platforms
?
Symmetrical.ai
Symmetrical.ai
Symmetrical.ai
Symmetrical.ai
Symmetrical.ai
Symmetrical.ai
SAP
Workday
ADP
TriNet
Paylocity
Paychex
Oracle Corporation
MYOB
IRIS Software Group
Paycom
PrestigePEO
Visma
Personio
Gusto
Rippling
Zenefits
PayFit
Employment Hero
Hibob
Paycor
Oyster
Namely
Topia
Wrapbook
Darwinbox
Factorial
Homebase
Humi HR
Flare
Employee Navigator
Holded
GoCo.io Inc
OnPay
BambooHR
NEOGOV
Bambee
Leena AI
Utmost
Avanti
Sesame HR
ZingHR
WurkNow
PeopleGuru
Kenjo
Humaans
Alexis
Asanify
ADP
TriNet
PRO Unlimited Global Solutions Inc.
PrestigePEO
Gusto
Rippling
Deel
Velocity Global
Remote
Papaya Global
Globalization Partners
Employment Hero
Oyster
Justworks
Topia
People 2.0
Omnipresent
WorkMotion
Localyze
Boundless
Multiplier
Ontop
SAP
Workday
Paylocity
Microsoft
Learning Technologies Group
Visma
Personio
Lattice
Swile
Hibob
Culture Amp
Visier
Gtmhub
WorkBoard
Betterworks, Inc.
Factorial
ActivTrak
Assembled
Flare
Winningtemp
Engagedly
BambooHR
Jellyfish
Centrical
Leapsome
ChartHop
15Five
Leena AI
Pathlight
AmplifAI
Mesh
Impraise
Mighty
StaffCircle
Kaizo
HelloTeam
Koan
Prodoscore
Javelo
Hi5 Technologies
Qulture.Rocks
Crunchr
Karma
Time is Ltd
Elevo
Kenjo
Arcade
Gatheround
eqtble
WorkPatterns
Bleexo
Okay
BoardClic
Alexis
Duuoo
MetaSpark
Matter
Perdoo
Perkness
Visma
Limeade
Enboarder
Blueboard
Officevibe
Flimp Communications
Socrates.ai
Mystery
inFeedo
AllVoices
HeyTeam
Joyous
Donut
Advantage Club
Five to Nine
Epoch
Twine
Eloops
Mentessa
VibeCatch
Inpulse
Wisq
Ayraa AI
Ambassify
Unlock
WFHomie
Swae
Natter
Spotlyfe
Kaido
Yerbo
LuckyCarrot
RandomCoffee
Kucha
Kona
Shuffl
Teamworki
Clune Technology Group
CloudPay
Alight Solutions
Swile
Awardco
Forma
Pento
Bennie
Symmetrical.ai
Cocoon
Willa
Sparrow
Cobee
Circula
Catch
Gig Wage
Compt
Zeal
Benepass
Payslip
Hourly
Juno
Dónde
Wellbees
Cloud8
Pilot
Tilt
Branch
Worklife
Fringe
JOON
Ben
Panther
YourCampus
Mistro
Elevate
Oracle Corporation
Microsoft
Staffbase
LumApps
Simpplr
Workvivo
Happeo
NEOGOV
Haystack

The Disruptors


Companies in the Integrated HRM, payroll, and benefits segment account for most of the funding in the space. Established companies such as Gusto and Zenefits lead the segment in funding among private players with USD 691 and USD 584 million, respectively. Meanwhile, the integrated performance and engagement segment accounts for the majority of startups. Culture Amp and Personio lead the segment in terms of funding among private companies. Other notable players include EOR/PEO service providers Deel and Remote who raised around USD 400 million in funding between 2020 and 2021. Intranet platforms funding is led by Staffbase and LumApps.

Integrated HRM, Payroll, and Benefits Platforms

?

Disruptors

?
Funding in USD Millions
Paycor
Public - Market cap USD 4.6 bn
Personio
772
Gusto
746
Rippling
697
Zenefits
584
PayFit
496
Employment Hero
296
Hibob
274
Oyster
224
Namely
218
Topia
139
Wrapbook
131
Darwinbox
107
Factorial
100
Homebase
99
Bambee
63
Humi HR
47
Leena AI
40
Flare
36
Employee Navigator
34
Utmost
32
Holded
27
Avanti
20
GoCo.io Inc
13
Sesame HR
11
ZingHR
10
WurkNow
10
OnPay
6
BambooHR
Unknown
PeopleGuru
Unknown
NEOGOV
Unknown
Watchlist
?
Kenjo
Humaans
Alexis
Asanify

EoR/ PEOs

?

Disruptors

?
Funding in USD Millions
Gusto
746
Rippling
697
Deel
679
Velocity Global
500
Remote
496
Papaya Global
445
Globalization Partners
350
Employment Hero
296
Oyster
224
Justworks
143
Topia
139
WorkMotion
77
Localyze
13
Boundless
5
People 2.0
Unknown
Watchlist
?
Omnipresent
Multiplier
Ontop

Integrated Performance and Engagement Platforms

?

Disruptors

?
Funding in USD Millions
Personio
772
Lattice
329
Swile
326
Hibob
274
Culture Amp
257
Visier
217
Gtmhub
161
WorkBoard
142
Betterworks, Inc.
130
Jellyfish
115
Factorial
100
ActivTrak
78
Assembled
71
Centrical
66
Leapsome
60
ChartHop
54
15Five
42
Leena AI
40
Flare
36
Pathlight
34
AmplifAI
22
Winningtemp
22
Mesh
16
Impraise
12
StaffCircle
8
Kaizo
7
Prodoscore
4
Engagedly
1
Javelo
1
BambooHR
Unknown
Karma
Unknown
Watchlist
?
Mighty
Time is Ltd
Elevo
Kenjo
Arcade
HelloTeam
Koan
Gatheround
eqtble
WorkPatterns
Bleexo
Okay
BoardClic
Alexis
Duuoo
MetaSpark
Hi5 Technologies
Qulture.Rocks
Matter
Crunchr
Perdoo
Perkness

Pure Play Engagement Platforms

?

Disruptors

?
Funding in USD Millions
Limeade
Public - Market cap USD 49.5 mn
Enboarder
49
Socrates.ai
26
Mystery
20
Blueboard
16
AllVoices
14
HeyTeam
13
Joyous
13
Donut
12
Advantage Club
7
Five to Nine
5
Epoch
5
Mentessa
1
Officevibe
Unknown
Flimp Communications
Unknown
Watchlist
?
Wisq
inFeedo
Ayraa AI
Twine
Ambassify
Unlock
Eloops
WFHomie
Swae
Natter
Spotlyfe
VibeCatch
Kaido
Yerbo
LuckyCarrot
RandomCoffee
Kucha
Kona
Shuffl
Inpulse
Teamworki

Pure Play Payroll and Benefits Platforms

?

Disruptors

?
Funding in USD Millions
Alight Solutions
Public - Market cap USD 3.2 bn
Swile
326
Awardco
70
Forma
58
Pento
54
Bennie
33
Symmetrical.ai
26
Cocoon
26
Willa
21
Sparrow
20
Cobee
19
Circula
19
Catch
18
Gig Wage
16
Compt
16
Zeal
15
Benepass
15
Juno
5
Dónde
4
Wellbees
2
Cloud8
1
Branch
Unknown
Worklife
Unknown
Watchlist
?
Payslip
Hourly
Fringe
JOON
Ben
Panther
YourCampus
Mistro
Pilot
Tilt
Elevate

Intranet Platforms

?

Disruptors

?
Funding in USD Millions
Staffbase
307
LumApps
102
Simpplr
61
Workvivo
39
Happeo
20
NEOGOV
Unknown
Watchlist
?
Haystack

Paycor

Paycor is a Software-as-a-Service (SaaS) and human capital management firm offering small and medium-sized enterprises (SMEs) with talent management, payroll, and HR solutions. Its HR solutions include time and attendance management, scheduling, and employee experience surveys. The talent management offering includes recruiting and onboarding software, while payroll and benefits features include tax processing and documentation, payments and benefits administration. In July 2021, Paycor raised USD 425.5 million in an initial public offering on the Nasdaq.

The company operates a subscription-based business model with paid plans starting at USD 99 per month per user. As of April 2021, the company serves more than 40,000 SMEs. As of April 2021, the company serves more than 40,000 SMEs.

Funding and financials

In FY2021, Paycor reported a GAAP loss per share of USD 0.66, coming in below analyst consensus expectations for a loss per share of USD 0.59. FY2021 revenue rose 7.6% year-over-year (YoY) to USD 352.8 million edging out analyst estimates for revenue of USD 350.7 million. The annual revenue was driven by a 43% YoY increase in total bookings which amounted to USD 115.1 million. Adjusted operating income rose marginally (+3.7%) YoY to USD 47.9 million, while adjusted net income amounted to USD 33.5 million (-4.4% YoY).  The company guided FY2022 full-year revenue to USD 421 million–422 million USD (19.3%–19.6% YoY implied growth) in Q3 FY2022 , and the adjusted operating income guidance guided to USD 41.8 million–42.8 million (12.9%–10.8% YoY implied decline).

Segment:
Integrated HRM, Payroll, and Benefits Platforms
Total funding:
USD 270.0 million
Competitors:
Zenefits, Just works, Globalization Partners, Gusto, Papaya Global, PayFit, People 2.0, NEOGOV
Disruptor Funding History

Integrated HRM, Payroll, and Benefits Platforms:

Paycor
Personio
Gusto
Rippling
Zenefits
PayFit
Employment Hero
Hibob
Oyster
Namely
Topia
Wrapbook
Darwinbox
Factorial
Homebase
Bambee
Humi HR
Leena AI
Flare
Employee Navigator
Utmost
Holded
Avanti
GoCo.io Inc
Sesame HR
ZingHR
WurkNow
OnPay
Kenjo
Humaans
Alexis
Asanify

EoR/ PEOs:

Gusto
Rippling
Deel
Velocity Global
Remote
Papaya Global
Globalization Partners
Employment Hero
Oyster
Justworks
Topia
WorkMotion
Localyze
Boundless
Omnipresent
Multiplier
Ontop

Integrated Performance and Engagement Platforms:

Personio
Lattice
Swile
Hibob
Culture Amp
Visier
Gtmhub
WorkBoard
Betterworks, Inc.
Jellyfish
Factorial
ActivTrak
Assembled
Centrical
Leapsome
ChartHop
15Five
Leena AI
Flare
Pathlight
AmplifAI
Winningtemp
Mesh
Impraise
StaffCircle
Kaizo
Prodoscore
Engagedly
Javelo
Mighty
Time is Ltd
Elevo
Kenjo
Arcade
HelloTeam
Koan
Gatheround
eqtble
WorkPatterns
Bleexo
Okay
BoardClic
Alexis
Duuoo
MetaSpark
Hi5 Technologies
Qulture.Rocks

Incumbents


Traditional players evolve through a mix of in-house solutions and acquisitions 

The incumbent players in this space are well-established companies that have been providing human capital management (HCM) solutions for decades. All incumbents have a strong track record of establishing fully-fledged offerings. They also offer a diverse range of solutions, with a variety of customizable packages that cater to businesses of all sizes. All incumbents offer a cloud-based solution similar to those that up-and-coming startups offer. 

The industry has seen consolidation, with a few large players making key acquisitions, both to solidify and diversify existing business segments as well as to support in-house solutions. Companies such as Automatic Data Processing (ADP), SAP, and Workday have made key acquisitions to strengthen their offerings, with a particular focus on workforce analytics, which has been identified as a new trend in HCM services. Workday has been particularly aggressive in its strategy, acquiring three companies that offer analytics in 2018. 

Another focus has been on acquiring companies that cater to small and medium-sized enterprises (SMEs). Paychex, for instance, has deployed strong acquisition-driven strategies relative to other players in this area. Conversely, although mergers and acquisitions (M&A) activity is relatively mute from the likes of Oracle, they have developed relevant, comprehensive in-house solutions over time. Similarly, Microsoft entered the enterprise intranet space with the launch of “Viva” developed in-house in 2021.

Integrated HRM, Payroll, and Benefits Platforms
EoR/ PEOs
Integrated Performance and Engagement Platforms
Pure Play Engagement Platforms
Pure Play Payroll and Benefits Platforms
Intranet Platforms
In House Development
M&A
Partnership
Investment

Notable Investors


No investor data is available

Funding data are powered by Crunchbase
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