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Pento scores $35m Series B

Pento, a payroll automation company, has raised $35 million in Series B funding.

Pento, a payroll automation company, has raised $35 million in Series B funding. Tiger Global and Avid Ventures led the round.

PRESS RELEASE

LONDON, 7th December 2021: Just six months after closing its Series A and following consecutive record-breaking months of growth, payroll automation company Pento has raised $35 million in a Series B round co-led by new investor Tiger Global and existing investor Avid Ventures. Existing investors General Catalyst, Seedcamp and Latitude also participated in the round.

Founded by Jonas Bøgh Larsen and Emil Hagbarth Rasmussen in 2017, Pento frees companies, their payroll teams and employees from onerous outsourcing and outdated software. Instead of relying on spreadsheets, PDFs, e-mails and countless manual checks, Pento’s SaaS platform fully automates the process from start to end, in real-time for a set monthly fee. Pento automates all of these functions while also providing a delightful user experience for in-house finance teams and payroll managers. By providing customers with more control and visibility over their monthly pay run, Pento reduces the amount of time customers spend on payroll by up to 80%.

In Europe, payroll outsourcing is a nearly $6 billion market and is expected to grow at an annual rate of 4.4%. In the UK alone, there are around 20,000 small and medium-sized businesses and 4,000 mid-market businesses that could benefit from Pento’s solution. This represents an opportunity to transform payroll automation for nearly 10 million employees within the UK alone and a $1+ billion annual revenue opportunity — even before expansion into other international markets.

Since the start of 2021, Pento has experienced record-breaking growth, leading to a 10x increase in revenue. The company has also onboarded major customers, including Starling Bank, voted Britain’s Best Bank at the British Bank Awards for four consecutive years.
Starling Bank joins existing Pento customers across a variety of industries, including tech startups (Pleo, Cuvva); large hospitality brands (Honest Burgers); and retail and e-commerce companies (Beauty Pie).

The latest round brings the company’s total funding to $53.4 million. Funds will be used for product development, service expansion, partner integrations, and expansion into new European countries.

In addition to its SaaS platform, Pento provides the infrastructure for the future of employee compensation through its partnerships and integrations with existing accounting software, HR products and pension providers. It already syncs seamlessly with Personio, Hibob, and BambooHR. Pento has also developed an open payroll API (currently in beta), which will allow any business to build custom integrations to automate more of their workflows, such as time-tracking or shift planning, and will allow employees to share pay and compensation data with third-party apps and services to validate their income to credit agencies, as well as other financial and HR organizations.

Jonas Bøgh Larsen, Co-founder and CEO at Pento, said: “Our incredible growth over the past 12 months is a testament to the team and the product we’ve built, as well as the investors who have supported our vision. We’re thrilled that this group of incredible investors now includes Tiger Global and an even deeper commitment by Avid Ventures. We built Pento having seen first-hand just how broken the current payroll processes are, and our continued success showcases just how strongly forward-thinking companies are asking for tools to fix this.”

John Mountain, CIO at Starling Bank, said: “As a technology-led bank we understand acutely the impact that the right digital tools can have on a business, particularly when it comes to financial services and employee compensation. We also know how challenging it can be to offer such services in a way that works seamlessly and which offers the user experience that our staff expect today. Pento has developed a platform that ticks all the boxes and then some. We have been impressed with its well-designed UI and seamless integration with our other workplace tools, and are looking forward to continuing our work together.”

Addie Lerner, Founder & Managing Partner at Avid Ventures, said: “What Jonas, Emil and the team at Pento are doing is not only revolutionizing how businesses pay their staff; it is also building the infrastructure upon which the future of employee compensation will be based. Their approach to thoughtful automation, their focus on data protection and security, and their understanding of the nuances and pain points of this space are what sets them apart. We’re excited to double down on our investment in Pento and to continue supporting them as they build the future of payroll.”

About Pento:
Pento is the payroll automation startup for companies looking to ditch onerous outsourcing and run every stage of payroll in real-time. Instead of relying on spreadsheets, PDFs, e-mails, and countless manual checks, the SaaS-based online platform gives its customers complete control over every step with easy-to-use, cloud-based tools, real-time calculations, greater transparency, and support. Founded by Jonas Bøgh Larsen and Emil Hagbarth Rasmussen in 2017, Pento has raised $53.4 million from investors including Avid Ventures, Tiger Global, General Catalyst, and Latitude. Pento.io