US-backed payroll software co Humanforce is the latest owner of fintech Earnd
Sydney payroll and workforce management software company Humanforce has acquired the Australian arm of fintech Wagestream – formerly Earnd – for an undisclosed sum.
It is the second local startup acquisition in six months by Humanforce, which is now backed by a Californian private firm, which snapped up Airtree-backed competitor Ento last September.
Accel-KKR spent $60 million to acquire a majority stake in 21-year-old Humanforce last May. That means the Wagestream acquisition needs approval from the Foreign Investment Review Board.
Wagestream Australia began life in 2018 as Earnd, co-founded by Josh Vernon and Serge Kotlyarov, to give employees access to income as they earn it. Following a $2.5 million raise in 2019, backed by NAB Ventures, Alvin Singh and Bosco Tan, and financial services executives including John Banfield, Andrew Birch and Rob Lederer,
It was a wild ride from there on in, with the now infamous supply chain finance company Greensill picking up the business for around $20 million in 2020. When Greensill collapsed in early 2021, Earnd’s founder, Josh Vernon, managed to convince UK fintech Wagestream, which also founded in 2018, to buy the business from Greensill’s administrators. A year later, Earnd raised $81 million in a Series C in April 2022, led by new US investors Smash Capital and BlackRock, along with existing shareholders Balderton Capital, Northzone and the Fair By Design charity fund.
It was renamed Wagestream Australia and is now transferring the business to Humanforce less than two years later.
Around 1 million employees at companies including Pizza Hut, Hungry Jack’s, JD Sports, BPAY, Freedom Furniture and Carnival Australia use Wagestream to get paid early. The platform also offers advice on financial well-being to users.
Humanforce CEO Clayton Pyne said the acquisition of Wagestream Australia aligns with the company’s focus on empowering deskless workforces with the tools and technology “to make work easier and life better”.
“Humanforce is fully committed to helping Wagestream Australia customers continue to deliver a positive employee experience,” he said.
“We are thrilled to join forces to ease the financial burden of employees while helping companies beat the talent crunch, so they can focus on improved productivity, compliance confidence and cost control.”
Vernon said that while financial stress increases for deskless workers, as their income is typically irregular.
“With the combined power of Humanforce’s integrated workforce management and payroll solution, employees can manage shifts, roster, track payroll and manage their financial well-being with complete transparency through a single, unified Humanforce solution,” he said.
