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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
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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.

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
?
Qulture.Rocks
Qulture.Rocks
Qulture.Rocks
Qulture.Rocks
Qulture.Rocks
Qulture.Rocks
SAP
Workday
ADP
TriNet
Paylocity
Paychex
Oracle Corporation
MYOB
IRIS Software Group
Paycom
PrestigePEO
Gusto
Zenefits
Personio
PayFit
Rippling
Hibob
Paycor
Namely
Employment Hero
Topia
Wrapbook
Darwinbox
Factorial
Homebase
Flare
Employee Navigator
Holded
Humi HR
GoCo.io Inc
OnPay
BambooHR
NEOGOV
Oyster
Leena AI
Bambee
Utmost
ZingHR
WurkNow
Kenjo
Humaans
Alexis
Asanify
ADP
TriNet
PRO Unlimited Global Solutions Inc.
PrestigePEO
Gusto
Deel
Rippling
Papaya Global
Globalization Partners
Remote
Employment Hero
Justworks
Topia
People 2.0
Velocity Global
Oyster
WorkMotion
Omnipresent
Localyze
Boundless
Ontop
Multiplier
SAP
Workday
Paylocity
Microsoft
Learning Technologies Group
Personio
Lattice
Swile
Hibob
Culture Amp
Visier
Gtmhub
WorkBoard
Betterworks, Inc.
Factorial
ActivTrak
Flare
Winningtemp
Engagedly
BambooHR
Centrical
ChartHop
Jellyfish
15Five
Leena AI
Pathlight
Assembled
Impraise
Mighty
Kaizo
HelloTeam
Koan
Prodoscore
Hi5 Technologies
Qulture.Rocks
Karma
Time is Ltd
Elevo
Kenjo
Arcade
Mesh
Gatheround
eqtble
WorkPatterns
Bleexo
Okay
BoardClic
Alexis
Duuoo
MetaSpark
Matter
Perdoo
Perkness
Limeade
Blueboard
Officevibe
AllVoices
Joyous
Donut
Advantage Club
inFeedo
Eloops
VibeCatch
Inpulse
Ayraa AI
Ambassify
Unlock
WFHomie
Mystery
Swae
Natter
Yerbo
LuckyCarrot
RandomCoffee
Kucha
Kona
Shuffl
Teamworki
Clune Technology Group
CloudPay
Alight Solutions
Swile
Awardco
Pento
Cocoon
Willa
Cobee
Catch
Gig Wage
Zeal
Benepass
Payslip
Hourly
Compt
Pilot
Tilt
Branch
Fringe
JOON
Ben
Panther
YourCampus
Mistro
Elevate
Microsoft
Staffbase
LumApps
Simpplr
Happeo
Workvivo
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 4.2 bn
Gusto
691
Zenefits
584
Personio
524
PayFit
496
Rippling
447
Hibob
274
Namely
218
Employment Hero
165
Topia
139
Wrapbook
131
Darwinbox
107
Factorial
100
Homebase
99
Oyster
74
Leena AI
40
Flare
36
Employee Navigator
34
Bambee
33
Utmost
32
Holded
27
Humi HR
23
GoCo.io Inc
13
ZingHR
10
WurkNow
10
OnPay
6
BambooHR
Unknown
NEOGOV
Unknown
Watchlist
?
Kenjo
Humaans
Alexis
Asanify

EoR/ PEOs

?

Disruptors

?
Funding in USD Millions
Gusto
691
Deel
629
Rippling
447
Papaya Global
445
Globalization Partners
350
Remote
196
Employment Hero
165
Justworks
143
Topia
139
Velocity Global
100
Oyster
74
WorkMotion
27
Localyze
13
Boundless
4
People 2.0
Unknown
Watchlist
?
Ontop
Omnipresent
Multiplier

Integrated Performance and Engagement Platforms

?

Disruptors

?
Funding in USD Millions
Personio
524
Lattice
329
Swile
326
Hibob
274
Culture Amp
257
Visier
217
Gtmhub
161
WorkBoard
142
Betterworks, Inc.
130
Factorial
100
ActivTrak
78
Centrical
66
ChartHop
54
Jellyfish
44
15Five
42
Leena AI
40
Flare
36
Pathlight
34
Winningtemp
22
Assembled
20
Impraise
12
Kaizo
7
Prodoscore
4
Engagedly
1
BambooHR
Unknown
Karma
Unknown
Watchlist
?
Mighty
Time is Ltd
Elevo
Kenjo
Arcade
HelloTeam
Koan
Mesh
Gatheround
eqtble
WorkPatterns
Bleexo
Okay
BoardClic
Alexis
Duuoo
MetaSpark
Hi5 Technologies
Qulture.Rocks
Matter
Perdoo
Perkness

Pure Play Engagement Platforms

?

Disruptors

?
Funding in USD Millions
Limeade
Public - Market cap USD 81.9 mn
Blueboard
16
AllVoices
14
Joyous
13
Donut
12
Advantage Club
7
Officevibe
Unknown
Watchlist
?
inFeedo
Ayraa AI
Ambassify
Unlock
Eloops
WFHomie
Mystery
Swae
Natter
VibeCatch
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 4.3 bn
Swile
326
Awardco
70
Pento
54
Cocoon
26
Willa
21
Cobee
19
Catch
18
Gig Wage
16
Zeal
15
Benepass
15
Branch
Unknown
Watchlist
?
Payslip
Hourly
Fringe
JOON
Ben
Panther
Compt
YourCampus
Mistro
Pilot
Tilt
Elevate

Intranet Platforms

?

Disruptors

?
Funding in USD Millions
Staffbase
191
LumApps
102
Simpplr
61
Happeo
20
Workvivo
17
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. It's 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.

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). 

In Q1 FY2022, Paycor upgraded its full-year revenue guidance to between USD 402-406 million (implying a projected YoY revenue growth of 26.6%-27.8% in FY2022) from the USD 396-400 million guidance provided in the previous quarter.

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

EoR/ PEOs:

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

Integrated Performance and Engagement Platforms:

The 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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