San Francisco HR platform Zenefits raises $15M in funding
Zenefits announced today that it has closed $15 million in funding to make payroll and HR tasks easier for both employers and employees, according to VentureBeat.
Andreessen Horowitz and existing investors Venrock and Maverick participated in the latest funding round. Zenefits has raised a total capital of $17.1 million to date, the report stated.
The platform that Zenefits created taps into a company's existing payroll and HR systems and walks employees through the hiring, payroll, tax deduction, insurance, time tracking, and resignation processes. The human resource information system (HRIS) platform digitizes all the information and stores them in one place. Each employee can access his own account and can edit the information when needed. The system then produces automated reports on the data, the report detailed.
The HRIS software is free. Zenefits earns money mainly as an insurance broker. According to the firm, the number of employees using its platform has doubled every six weeks since 2013. The startup now works with more than 500 firms and manages over 5,000 employees, said the report.
Co-founder Parker Conrad explained: "This is the great hack in our business model. Insurance brokers make way too much money for the value they provide. We say switch to us and we will do way more for you than other insurance brokers will do. About 50 percent of our customers are moving to us as their broker. We can get them set up in 30 minutes; it is a no brainer."
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