MC Credit Partners Gives $37M Debt Facility to Payroll Software Maker OnPay

Jesse Burgess

Atlanta-based OnPay has secured $100 million in new funding, as it develops advanced payroll and HR software that last year won high praise from Fortune magazine and PCMag.

The startup closed a $63 million Series B funding round led by California venture firm Carrick Capital Partners, with participation from Austin, Texas-based AB Private Credit Investors, the middle market private capital platform of AllianceBernstein, and other existing investors. It also secured a $37 million debt facility from Stamford, Conn.-based MC Credit Partners.

Family Business

“This funding represents a transformative milestone for OnPay and is a testament to the hard work and dedication of our team,” said OnPay founder and CEO Jesse Burgess, who commercialized software initially built at his long-standing family business. “We’re excited to expand our offerings and drive impactful growth for businesses that rely on us for payroll and HR.”

OnPay’s software is used by over 25,000 small- and medium-sized businesses across the United States to manage payroll and HR functions. Fortune magazine listed OnPay’s software among the top 10 in its category and the best for combining payroll and HR. PCMag listed OnPay in its Editors’ Choice.

“OnPay’s superior product and unique service approach position the company to meet the growing demands of SMBs,” said Carrick Capital Partners co-CEO Jim Madden.

Varied Functionalities

OnPay’s story began when Burgess joined his family’s payroll business in 2007. Frustrated by watching six clerks wrestle with inefficiencies of the business, and the lack of high tech, Burgess started by automating repetitive tasks before he “realized the whole payroll process could move online.”

“We’re different because we’re a payroll business, not a startup. We’ve combined our experience with the latest technology to develop payroll software that’s fast, intuitive, and designed to help small business owners do what they do best,” Burgess said.

OnPay launched its first product in 2011. Today, it provides multiple apps that can be used not only for basic payroll but also to manage teams, health insurance, workers compensation and even 401(k) plans. According to Allied Market Research, the global HR payroll software market could more than double to $55 billion in 2031.