KKR Acquires Stake in Employment Hero from SEEK Investments
KKR, a globally recognized investment firm, has entered into definitive agreements to acquire a stake in Employment Hero, a premier employment management solutions provider, from SEEK Investments. This deal marks a significant development in the human capital management sector, underscoring KKR’s strategic push into technology-driven workforce solutions. SEEK Investments, which manages the SEEK Growth Fund, will maintain a substantial interest in Employment Hero, reinforcing its commitment to the company’s long-term growth.
Employment Hero’s Evolution and Market Presence
Since its inception in 2014, Employment Hero has positioned itself as a leader in employment management, offering comprehensive human resources (HR) solutions, payroll processing, recruitment tools, and employee engagement mechanisms. The company has successfully expanded its services to cater to more than 300,000 small and medium-sized enterprises (SMEs) across multiple geographies. This broad reach reflects its commitment to empowering businesses with efficient HR and workforce management solutions.
Over the past decade, Employment Hero has steadily scaled its operations, integrating cutting-edge technology into its cloud-native platform. Its commitment to innovation has enabled it to optimize HR processes, making them more seamless and efficient for SMEs worldwide. The company’s user-centric approach has resulted in a strong customer base spanning Australia, the United Kingdom, Canada, and other international markets.
KKR’s Strategic Investment and Vision for Growth
Mukul Chawla, Partner and Head of Asia Pacific Growth Equity at KKR, emphasized the significance of this investment in Australia’s technology landscape. He noted, “Employment Hero marks our latest technology growth investment in Australia, a key market for our growth equity strategy, and aligns with our thematic focus on SMB (small and medium business) software. We look forward to supporting the continued platformization and international expansion of Employment Hero, which has established itself as a leader in human resources management in multiple markets, including Australia, the UK, and Canada, with its cloud-native and comprehensive product suite.”
KKR’s investment underscores its strategic focus on high-growth technology firms that drive digital transformation. Employment Hero’s suite of tools aligns with KKR’s broader investment thesis, which prioritizes scalable, cloud-based solutions designed to enhance business efficiency.
Employment Hero’s Recent Milestones and Growth Trajectory
Employment Hero has been on a remarkable growth trajectory, recently surpassing A$250 million in annual recurring revenue (ARR). This milestone highlights the increasing demand for its Jobs, Payroll, HR, and Benefits products, which collectively help businesses streamline workforce management and improve operational outcomes.
The company’s strong momentum is further demonstrated by its acquisition of Humi, a leading Canadian employment platform, in January. This acquisition has reinforced Employment Hero’s expansion strategy, enabling it to penetrate the North American market more effectively.
Ben Thompson, CEO and Co-Founder of Employment Hero, expressed his enthusiasm about the new partnership with KKR, stating, “Employment Hero’s mission is to make employment easier and more valuable for everyone. Over 300,000 businesses globally are using our employment operating system, helping boost job creation for local economies and GDP globally. Our recent milestone of A$250 million in annual recurring revenue also signals the growing customer demand for our Jobs, Payroll, HR, and Benefits products to drive better business outcomes. KKR’s significant experience, resources, and network will be extremely valuable in our efforts, particularly as we look to further develop our international footprint. We welcome KKR as a strategic partner and look forward to our close collaboration with them over the long term.”
Thompson’s statement reinforces Employment Hero’s commitment to continuous innovation and international expansion. The support from KKR is expected to accelerate the company’s ability to enhance its platform and deliver greater value to businesses worldwide.
SEEK Investments’ Continued Confidence in Employment Hero
SEEK Investments, through its SEEK Growth Fund, has been a long-term backer of Employment Hero. The fund remains a material investor in the company, demonstrating its strong conviction in Employment Hero’s strategic direction and future growth potential.
Andrew Bassat, Executive Chairman and CEO of SEEK Investments, commented on the transaction, saying, “The SEEK Growth Fund has been a long-term investor and supporter of Employment Hero. We retain our high conviction towards Employment Hero’s strategy and outlook. We look forward to continuing our partnership with Ben and working with KKR to help Employment Hero realize its full potential.”
This endorsement from SEEK Investments highlights the strength of Employment Hero’s business model and its continued capacity for expansion and innovation.
KKR’s Broader Investment Strategy in the Region
KKR’s investment in Employment Hero aligns with its broader strategy of supporting high-growth technology enterprises across the Asia-Pacific region. This investment comes as part of KKR’s Asia Next Generation strategy, which focuses on technology enablement for businesses.
KKR has a history of investing in innovative technology firms within the Asia-Pacific region, including:
- Advanced Navigation – A developer specializing in AI robotics and navigation technology.
- SmartHR – A cloud-based HR management software provider in Japan.
- GrowSari – A B2B e-commerce platform supporting SMEs in the Philippines.
- KiotViet – A SaaS platform catering to SMEs in Vietnam.
- Privy – A digital trust provider in Indonesia.
These investments illustrate KKR’s focus on technology-driven businesses that enhance operational efficiencies and drive economic growth. The addition of Employment Hero to its portfolio is a testament to KKR’s confidence in the long-term viability of the employment management technology sector.
The Future of Employment Hero
Employment Hero aims to further expand its international footprint while continuing to innovate and refine its product offerings. The strategic backing from KKR is expected to fuel the company’s efforts in enhancing automation, artificial intelligence-driven HR solutions, and data analytics to provide businesses with deeper insights into workforce management.
Employment Hero’s ability to address the evolving needs of SMEs positions it well for sustained growth. The company’s platform continues to gain traction among businesses looking for comprehensive HR solutions that improve employee engagement, streamline payroll processes, and enhance recruitment strategies.
The collaboration with KKR is set to propel Employment Hero into its next phase of growth, reinforcing its position as a leader in the employment management technology sector. With continued support from SEEK Investments and KKR’s strategic expertise, the company is poised to scale new heights in the global HR technology landscape.
