WorkTrans, a Chinese developer of human resources (HR) management software, announced on Friday that it has pocketed a combined $190.5 million across Series C and Series D rounds of financing.
The startup raised $50.5 million in the Series C round backed by Sequoia Capital China and several earlier investors. It raked in $140 million in the Series D round from Chinese social networking and gaming giant Tencent, and CICC Capital, a private equity fund management platform of Chinese investment bank CICC, among others.
“China’s cloud-based HR services market is burgeoning in recent years as industry infrastructures continue to improve; new demand surges; and clients’ HR investment grows,” WorkTrans’ founder and CEO Chu Feng said in a statement.
Globally, payroll & HR solutions and services market is expected to reach $21.9 billion in 2020 and further grow to $38 billion by 2027, according to market researcher ReportLinker.
Driven by rising domestic labour costs due to the country’s ageing demographic, China’s payroll & HR solutions and services market is forecast to hit $8.8 billion by 2027, trailing a compound annual growth rate (CAGR) of 12.6 per cent between 2020 and 2027, compared to other rapidly-developing markets like Japan, Canada, and Germany, at 3.5 per cent, 7.4 per cent, and 5.4 per cent, respectively.
Shanghai-based WorkTrans leverages advanced technologies like cloud computing and deep learning to build HR management software and solutions, primarily for large and medium-sized enterprises in sectors including retail, manufacturing, catering, and modern service.
Founded in 2015, the firm has by far served more than 4 million employees across 120,000 enterprises, according to its website. Some of its clients include Bank of China (BOC), supermarket retailer Carrefour China, drug maker Sinopharm Group, dairy products maker Mengniu Dairy, and food & beverage brand BreadTalk.
Upon the completion of the new financing, Chu said that the startup will continue its efforts in offering “one-stop, high cost-effective HR solutions” by increasing investment in product & technology development, and construction of a nationwide service network.
In November 2018, WorkTrans secured 160 million yuan in a Series B round from Lightspeed China Partners, DCM, and Qiming Venture Partners.
The firm also raised 100 million yuan in a Series A+ round in February 2018, following its 45-million-yuan Series A round in August 2017, according to its website.
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