Global private equity major KKR announced that it will acquire a stake in employment management platform Employment Hero from SEEK Investments for an undisclosed amount.
SEEK Investments, which manages SEEK Growth Fund, a long-term investment vehicle focused on human capital management, will continue to retain a significant stake in the Australian firm, per the announcement.
KKR is making the investment through its Asia Next Generation strategy, part of the firm’s Asia-focused growth equity platform.
The deal marks KKR’s largest growth equity investment in Australia, following its stake in AI-focused robotics and navigation technology developer Advanced Navigation.
“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 software,” said Mukul Chawla, partner and head of Asia Pacific Growth Equity at KKR.
KKR’s Asia Next Generation strategy has also invested in other technology-driven businesses across the region, including SmartHR in Japan, e-commerce platform GrowSari in the Philippines, SaaS platform KiotViet in Vietnam, and digital trust provider Privy in Indonesia.
Founded in 2014, Employment Hero provides small- and medium-sized enterprises (SMEs) with a suite of cloud-based human resource management, payroll, recruitment, and employee engagement tools.
The platform covers every stage of the employee lifecycle and is used by more than 300,000 SMEs globally. Employment Hero said it recently surpassed A$250 million in annual recurring revenue.
The investment builds on Employment Hero’s recent acquisition of Canadian employment platform Humi in January, part of its broader strategy to grow outside Australia.
The company’s co-founder and CEO Ben Thompson described the deal with KKR as a key step in accelerating the company’s global footprint.
“KKR’s significant experience, resources, and network will be extremely valuable in our efforts, particularly as we look to further develop our international footprint,” Thompson said.
SEEK Investments has been a backer of Employment Hero since its early stages. Andrew Bassat, Executive Chairman and CEO of SEEK Investments said the firm remains highly confident in Employment Hero’s strategy and potential.
“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 realise its full potential,” Bassat said.
