Payment automation startup Wagepoint raises $2 million to build HR apps

wagepoint

Waterloo-based payment automation Wagepoint has raised $2 million from TIMIA Capital.

Wagepoint has signed deals with several cloud-focused accounting firms, like Ledgers (based out of Ontario) and Operio (a division of Raymond Chabot Grant Thornton based out of Quebec).

“Wagepoint has doubled its subscriber base every year since launching in 2013. This past year, we’ve found ourselves in the fortunate position of working with some large-scale partners that will have a significant impact on our growth,” said Wagepoint CEO Shrad Rao. “As a young startup, we need all the help we can get to scale our business. That’s where the support from TIMIA comes in to help further fuel our growth ambitions.”

Wagepoint recently launched its QuickBooks Advanced Payroll powered by Wagepoint (QBOAP) solution, a partnership with Intuit Canada that embeds a full Intuit-branded version of Wagepoint within QuickBooks Online (QBO). The small business accounting platform curently has 150,000 subscribers.

“We have known Shrad and his Wagepoint team since the very beginning of their entrepreneurial journey in the Communitech incubator,” adds Andrew Abouchar, TIMIA’s VP of Underwriting. “Our capital infusion aligns with the existing stakeholders’ goals by supporting this company as it onboards new customers and drives its average revenue per customer higher. We are excited to be investing in a scrappy management team that is punching above its weight class — with aggressive and credible plans to accelerate its revenue growth.”

Wagepoint plans to focus on further strengthening its core product, and launch more human resource (HR) apps to help small businesses manage employees.