In the year 1996, a joint enterprise emerged between two entities, Patersons HR and Payroll Solutions, giving birth to a new venture known as CloudPay. This venture embarked on a mission to deliver payroll and payment solutions to corporate customers. Over the years, CloudPay has quietly expanded its services, incorporating workflow automation features to stay competitive with emerging challengers.
CFO Andy Thomson confirms to TechCrunch that the company is on an upward trajectory.
Thomson highlights that CloudPay is currently managing the payroll operations for 280 companies, which include high-profile names like Visa, Wayfair, Wells Fargo, Expedia, and The London Stock Exchange, with an annual processing of over 3 million payslips across more than 130 nations.
“As of now, CloudPay boasts a contracted revenue of $125 million,” Thomson reports. “In the past three years, our revenue has seen a growth exceeding double.”
Recently, CloudPay secured a substantial injection of $120 million in new funding, spearheaded by Blue Owl Capital. This new financial milestone boosts the company’s total funding to $228 million, marking a valuation that Thomson suggests is “significantly higher” than its valuation in October 2022.
Thomson notes, “Amid a landscape of constant flux, consumer expectations are evolving accordingly. They’re demanding more. In today’s instant-gratification culture, traditional payroll systems often fall short, prompting us to innovate our payroll solutions to meet new challenges. Additionally, navigating the intricate web of compliance and legislative requirements, which vary greatly from country to country, has also become more complex.”
CloudPay now presents a comprehensive suite of services that include global payroll, wage disbursement, and instant pay features. It offers payroll experts access to real-time analytics and tailored dashboards, while enabling finance departments to select from a variety of payment and fund management options that are specific to the needs of their employees.
The race in the payroll software sector remains intense, with new entrants like the Y Combinator-supported Workpay, Symmetrical.ai, Payroll Integrations, and Skuad—which has recently been acquired by the fintech firm Payoneer. As observed by my colleague Mary Ann, it appears that an increasing number of startups are aiming to revolutionize how people receive their earnings.
With a robust team of 1,350 individuals and a presence in locations such as Raleigh, Budapest, Shanghai, Costa Rica, and Barcelona, CloudPay is directing the capital from its latest fundraising round towards welcoming new partnership integrations and advancing its automation and AI technology.
“Focusing on technological innovation has been a pivotal aspect for CloudPay this year, and with the current funding, we’re poised to accelerate our projects,” Thomson shares. “We are anticipating to unveil AI-related developments later in the year.”
Investment for CloudPay’s latest funding round also saw contributions from Rho Capital Partners, The Olayan Group, and Hollyport Capital.
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