ZenPayroll nabs $60 million in funding led by Google Capital

The round will help the cloud-based payroll software provider grow its team and expand nationally.

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Cloud-based payroll software provider ZenPayroll has raised a $60 million Series B round led by Google Capital, the company announced Monday.

Since it's founding in 2012, ZenPayroll has enjoyed considerable success with investors, with early funding from the CEOs of Yelp, Dropbox, Yammer, and Box, as well as Y Combinator.

The new round of funding, which includes participation from Emergence Capital Partners, Ribbit Capital, General Catalyst, Kleiner Perkins, Caufield & Byers and Google Ventures, brings the San Francisco-based startup's total financing to $86.1 million, with an estimated value of $560 million.

Aside from investor success, ZenPayroll has made gains as a payroll provider for SMBs. The company has grown ten-fold since its Series A, and boasts more than 10,000 small business users across the country. The company charges a $25 flat rate and $4 per employee for its payroll services.

ZenPayroll plans to use the latest round of funding to expand its team and national reach. At this point, the company supports businesses in 47 states and the District of Columbia, but by the end of April it plans to extend support to businesses nationwide.

ZenPayroll has also focused its growth strategy around becoming a robust ecosystem for SMB technology. The company has partnered with dozens SMB-focused technology companies in a bid to connect back office tools ranging from payroll to benefits to human resources. Established partnerships include Intuit, Xero and FreshBooks, Expensify, SimplyInsured and Zenefits, among others.

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