Atlanta-based payroll service provider OnPay has announced the completion of a $6 million Series A funding round from a coterie of individual private investors, exceeding its $5 million goal. OnPay will use the investment to grow its team, expand marketing efforts, develop products, and enhance the company’s customer experience.
“We’ll be hiring engineers and product developers, and building out a new accounts team,” says Mark McKee, president and COO of OnPay. “We just started marketing last year, to generate awareness of the company.”
In a statement, OnPay founder and CEO Jesse Burgess highlighted the funding round as evidence of the company’s growing reputation in the marketplace. “Our rapid growth over the past year signals a significant demand for high-quality payroll services,” he said. “With this funding, we will continue to scale and exceed the expectations of our clients, while focusing on innovative product-led development.”
McKee also noted the unconventional road the company took to find funding. “We took a slightly non-traditional path. We did not raise this [funding round] from institutions. We didn’t raise it from venture capitalists. We raised it from individuals,” says McKee. “What we did was try to raise capital from folks who had been in business before, either from owning their own company, or running a company and having some kind of leadership experience. We were really fortunate to find people who had experience growing businesses quickly, so we could lean on them as OnPay begins to scale rapidly.”