Calgary-based FinTech startup Wagepoint has made its first acquisition, purchasing Massachusetts-based Timesheet Mobile (TSM), a provider of workforce management solutions.
Wagepoint noted the deal was made possible due to the financing it received in 2020 from Providence Strategic Growth (PSG). PSG secured a majority equity stake in Wagepoint in September 2020, investing $10 million in primary capital, but also buying out Wagepoint investors, including Bill Murphy, one of its three co-founders.
The startup claims the funding has also helped to fuel Wagepoint’s next phase of growth; contributing to a 47 percent increase in revenue, a nearly 30 percent increase in client base, and a 52 percent increase in team size since the recapitalization.
“Our goal with this acquisition was to listen to our customers and find a great full-featured time and attendance product, and with TSM, we’ve done just that.”
— Shrad Rao
Founded in 2012, Wagepoint aims to simplify payroll, providing a platform that automates the processes of calculating wages and reporting on taxes. It claims a customer base of over 18,000 small businesses, accountants, and bookkeepers across North America.
CEO Shrad Rao said more than half of its customers have hired staff paid by the hour and would benefit from the combination of payroll systems with employee’s time and attendance, now made possible through its purchase of Timesheet Mobile.
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“Our goal with this acquisition was to listen to our customers and find a great full-featured time and attendance product, and with TSM, we’ve done just that,” Rao said.
Launched in 2011, TSM has developed an application that streamlines the process of clocking in and out of work. With a supported mobile device, employees can use the platform to log mileage, view schedules, adjust online timesheets, and switch between tasks. Its system also has the ability to auto-calculate each worker’s billing time and rate according to the job being performed.
Wagepoint is expanding its headcount with the addition of TSM’s workforce and its leadership team, including president Bob Drainville and vice president of business development Eric Reed.
The integration of the two companies is currently underway.
By 2022, Wagepoint intends to launch an upgraded product dubbed “Wagepoint 2.0” with enhanced features, more user control, and increased scalability.