Paycor, a SaaS (Software-as-a-Service), HCM (Human Capital Management) software, and online payroll services leader, aims to secure USD 100 million in an IPO (initial public offering) on Nasdaq under the symbol PYCR.
Based on the HCM firm’s confidential filing with SEC (Security and Exchange Commission), joint bookrunners for Paycor’s deal included names such as Jefferies, Deutsche Bank, J.P. Morgan, Goldman Sachs, and Credit Suisse.
On the business front, Paycor offers a suite of solutions for small and medium-sized businesses (SMBs) and aims to simplify payroll workflows and maintain regulatory compliance.
The company at present works with over 40,000 SMBs delivering a plethora of payroll, recruiting, and HR solutions.
Based out of Cincinnati, Ohio, Paycor posted USD 338 million in revenue for a period of 12 months that ended on March 31, with a yearly growth rate of 13%.
As per the company, “The importance of people management has been elevated from a payroll-centric cost center to a highly strategic function focused on talent management as a critical component of business competitiveness.”
The HCM change has been strengthened by the Coronavirus pandemic, making human resources pivotal in keeping up with productivity and employee morale.
The new demand driven by the pandemic accelerates the transformation of HCM technology to replace manual and mundane processes and results in delivering solutions to lead data-driven decisions.
According to Paycor, several SMBs deploy legacy HCM solutions for HCM. These solutions are most often delivered by national and regional payroll service bureaus or by deploying in-house tools developed on top of ERP systems.
In January, Paycor raised an impressive sum of USD 270 million. The funding round was led by the Qatar Investment Authority and Neuberger Berman and witnessed participation from Franklin Templeton, ClearBridge Investments, Leumi Partners, and Teca Partners.
According to a PYMNTS interview excerpt, Dan Westgarth, COO of payroll firm Deel, said that although payroll functionality needs to adjust as per new demands, there is also an opportunity to make use of the changes to connect with employees on a deeper level that too with back-office functionality.