HR tech startup Sprout Solutions has announced its acquisition of the Philippines operations of JustPayroll Inc., a provider of enterprise-grade payroll solutions, for an undisclosed amount. The acquisition includes all existing clients and employees of JustPayroll.
Founded in 2013, JustPayroll provides timekeeping, scheduling, salary calculations, payroll outsourcing, and government reporting services for the Philippine market.
According to the 2021 Payroll Complexity Index, 40% of companies in the Philippines still use spreadsheets, and 18% continue to use high-risk and largely non-compliant manual and paper-based activities as part of their payroll processing.
“In our effort to simplify our Asian operations, we’ve made the decision to exit from the local SaaS and Outsourced payroll markets in the Philippines and focus on our group PEO and BPO offer,” said JustPayroll CEO David B.
Per the announcement, new clients from JustPayroll will also continue to be serviced and guided through this transition period by their existing support contacts, now as employees of Sprout’s Customer Success team.
Sprout is a payroll and human resources platform from Manila founded by husband and wife duo Patrick and Alexandria Agbayani Gentry in 2015.
The Sprout platform automates HR processes such as payroll management, employee benefits administration, time and attendance tracking, and performance management.
The startup also offers an employee self-service portal where employees can access their payroll, benefits, and personal information online.
Sprout claims to have over 1,000 corporate clients and 180,000 active users in the Philippines across various industries. It offers a tailor-made, end-to-end HR platform that caters to industries such as logistics, BPO, retail, entertainment, information technology, financial services, real estate, and healthcare.
“Through this acquisition, we’re not just transforming payroll and timekeeping experiences for our valued clients, we’re redefining the essence of seamless workforce management,” said Patrick Gentry, CEO and Co-founder of Sprout Solutions.
In April last year, the company raised about $10.7 million in a funding round led by Cercano Management, with support from SoftBank Ventures Asia, GSR Ventures, and AFG Partners.
Sprout raised $6 million in a Series A funding round led by global venture capital firm Point72 Ventures, the early-stage VC firm of American billionaire Steve Cohen, in 2019. The deal marked Point72’s foray into Southeast Asia.