Israeli startup Papaya Global, which has developed a payroll platform for cross-border management of human resources and employee salaries, has tripled its valuation within six months. The company has announced that it has raised $250 million at a valuation of $3.7 billion. In March, Papaya Global raised $100 million at a company valuation of $1.2 billion, after money. Papaya Global's valuation has risen ten-fold since completing its $40 million financing round last September.
This latest financing round was co-led by existing investor Insight Partners and new investor Tiger Global and with the participation of Bessemer Ventures, IVP, Alkeon Capital, Workday Ventures, Access Industries and Group 11. This brings to $440 million the total amount raised by the company.
Papaya Global was founded in 2016 by Einat Guez, CTO Ofer Herman and CPO Ruben Drong and is the only Israeli unicorn headed by a woman.
Guez said that in 2021 Papaya Global will come "very near" to annual recurring revenue (ARR) of $100 million. She added, "We are planning an IPO within the next 24 months but of course it depends on parameters like the situation of the market."
Papaya is operating in a fast growing international market with more and more companies choosing to employ people in other countries to cope with the shortage of talented employees in their own countries. These companies need solutions that will allow them to pay these employees in their local currencies and according to the laws in the countries where they live.
Papaya's customers include Microsoft, Toyota, Wix and Intel and it offers a package that combines both software and services.
This latest financing round makes Papaya Global the highest valuation player in the payroll management solutions sector. Rivals include; Deel, founded by Israeli-French entrepreneur Alex Buaziz, which recently raised $156 million at a company valuation of $1.25 billion; Remote, founded in 2019, raised $150 million at a valuation of over $1 billion; and Oyster raised $50 million in June at a company valuation of $475 million.
Israel's fintech startup sector is currently buzzing. Global payment network company Rapyd raised $300 million last month at a company valuation of $8.75 billion, tripling its valuation since January, and accounts payable tool Melio has reportedly raised money at a valuation of $4 billion, up from $1.3 billion at the start of the year.
Published by Globes, Israel business news - en.globes.co.il - on September 11, 2021
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