Papaya Global Raises $250M Toward Onboarding, Cross-Border Pay

Tel Aviv-based payroll and payroll management platform Papaya Global has raised $250 million in a new funding round, The Times of Israel reported.

The company is now valued at $3.7 billion, according to the report. With the new funding, Papaya said it plans to focus on growth and attracting new, larger clients, including Fortune 500 companies.

This round is the company’s third in less than a year, the report stated. The last time the company raised money was in March, with a $100 million investment total raising the value of the company to over $1 billion. There was also a $40 million investment in September 2020.

The rapid growth comes from the adoption of more remote work and global hiring practices amid the pandemic, according to the report.

Papaya’s services, based on the cloud, can help with global hiring — including onboarding, ongoing management and cross-border payments. It can also with meeting privacy standards, the report stated.

“2021 is a breakthrough year for Papaya,” said CEO Eynat Guez, who is also an Israeli entrepreneur, per the report. “This latest round of funding, which follows our Series C only six months ago, will allow Papaya to continue its hyper-growth as we expand globally.”

Guez said in the report that companies are switching to remote work, making compliance more complex.

“[W]e are seeing substantial demand for Papaya’s solution, even in a challenging business environment,” she said, per the report.

Guez said the company is now preparing for an initial public offering (IPO) within the next two years, depending on how the market goes, according to the report.

Scale Venture Partners led Papaya’s September 2020 funding round, and there was participation from Access Industries (through its Israeli vehicle Claltech), Workday Ventures and existing investors.

Read more: Payroll Management Firm Papaya Global Notches $40M in Series B

Scale Venture Partners Partner Rory O’Driscoll said at the time that the funding was a “testament to [Papaya’s] top-notch executive leadership as well as their ability to streamline international payroll management, a first for many enterprises that have learned to live with highly manual payroll processes.”