France bags another unicorn as payroll platform PayFit lands €254m

PayFit, a payroll and HR management platform for SMEs, has secured €254m from a Series E funding round led by General Atlantic.

The funding round has pushed the company’s valuation to €1.82bn – making the company a new unicorn in the burgeoning French FinTech space.

Also taking part in the Series E were Eurazeo, Accel Ventures and Bpifrance. The €254m raised by PayFit is a record-breaking amount for a French HR startup, according to FinTech Finance.

Founded in 2015, PayFit offers an integrated payroll and HR management software. Its features include payroll management, reporting, benefits, pension submissions, expenses, onboarding, leaves and absences and more.

The company has gained over 6,000 clients since its founding and has raised €179m to date. In March 2021, the firm bagged €90m from a Series D raise. Alongside its home market of France, PayFit has also expanded into Germany, Spain and the UK, and is looking to expand its employee base from 700 to over 1000 within the next 12 months.

According to PayFit, it intends to use the newly raised capital to recruit additional top talent, accelerate the development of innovative products and increase its European market share.

The businesses is also aiming to use the investment to deepen its penetration in existing markets, invest in its core automated payroll software offering and continue to expand its SME-tailored solution across HR management.

PayFit CEO and co-founder Firmin Zocchetto said, “PayFit’s expansion beyond France into the UK, Spain and Germany demonstrated further validation of our innovative offering and our capacity to scale up. As we look ahead, we plan to use these new funds to deepen our presence in our existing markets, where we have significant growth potential.

“At PayFit, we are proud to have built a company with strong foundations, where people are happy to work and that can have a real impact on our clients. This Series E funding will allow us to maintain the rapid growth we have achieved since our founding.”

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