By Steve Brooks
Immedis, a leading provider of consolidated global payroll solutions, has raised $50 million in a strategic investment led by Lead Edge Capital. It last raised funding in Jun 2019 when Scottish Equity Partners led a €25 million funding round. In June 2019 Immedis was valued at €170 million and this latest round values it at $575 million. Scottish Equity partners remain invested in the company. Immedis is still majority-owned by its founder Terry Clune of the Clune Technology Group.
Terry Clune, Founder and Chairman of Immedis, said “I want to thank our incredible Immedis team for always focusing on building the best. We have an exceptional management team, led by CEO Ruairi Kelleher and Mark Graham with Christine Keily and Richard Limpkin. And we are delighted to be joined by Lead Edge Capital and Brian Neider on the next phase of our growth.”
The new funding round will help the company further accelerate growth. It already has offices in Dublin, London, New Jersey, Sydney and Varna (Bulgaria). It is looking to add offices on the West coast of the US, and Singapore to continue its meteoric growth.
Ruairi Kelleher, CEO of Immedis said: “We are proud to be working with Lead Edge Capital, a highly regarded growth equity fund that we have had the pleasure of getting to know well in advance of this transaction. This is an incredibly exciting time for Immedis, our customers, our partners and our employees.”
Immedis is a division of The Taxback Group, a global financial services group. It provides payroll and tax services to organisations and individuals in over 130 countries. Customers include Airbus, ESB International, Kony and Dornan engineering. Its global cloud payroll platform is complemented by a team of qualified payroll and tax experts that enable organisations to outsource their payroll requirements with confidence. As companies look to expand quickly Immedis provides a service that enables them to have confidence that their operations remain compliant in this domain.
Brian Neider, Partner at Lead Edge Capital, who will join Immedis’ Board of Directors commented: “Immedis is redefining how organizations are managing global payroll through service and technology. What they have achieved to date is exceptional. The Company is trusted by some of the world’s fastest-growing enterprises like ServiceNow, Uber and Nutanix and we are excited to help fast track the Immedis success story.”
The opportunity for growth is huge. ReportLinker estimates that the Global Payroll Outsourcing Services Market to Reach US$22. 8 Billion by 2027. Even amid the COVID-19 crisis, the market has reached US$17.9 billion this year. Immedis itself has achieved more than 100% bookings growth over the last year. As companies continue expansion plans internationally, finding the right partners to help with that expansion and minimize risks is essential. Immedis is one of those companies looking to help.
The technology that underpins Immedis is also improving. Last month it rolled out the latest update. This includes a new Academy with more than 30 modules to help train and certify users on the platform. The update contained several enhancements including:
Immedis is a rapidly growing player in a crowded market. This funding should help to accelerate growth as it targets becoming a billion-dollar company. It isn’t clear what the impact of COVID will have on revenues. However, Immedis will hope that the net new customers will offset any reduction in the payroll of existing customers.
What is notable is that Immedis is now talking in dollars rather than Euros as it looks to the US and Asian markets for its next phase of growth. With a US-based private equity partner involved it will hope to continue its success over the next few years in its next chapter of growth.