The investment will go towards recapitalising the company and to fund growth initiatives, Warburg Pincus said.
More than 3,000 enterprise subscription customers in 13 countries use Payscale’s products to make salary decisions for more than two million employees.
“We are excited to partner with Mike and the rest of the PayScale team as they continue to develop and enhance innovative compensation software and data products for customers around the world,” said Justin Sadrian, managing director, Warburg Pincus. “At a time when businesses increasingly seek sophisticated analytics about employee compensation, PayScale’s offerings enable its customers to make better, faster and smarter decisions related to attracting and retaining the talent to power their organizations in a cost-effective manner.”
The company anticipates supporting its growth initiatives by hiring to expand its go-to-market and product development teams among other areas.
“PayScale’s investment from Warburg Pincus is an exciting development for the Seattle tech scene. They are poised to disrupt a key market in human capital management, one of the hottest areas of growth in business software right now,” said Matt McIlwain, managing director, Madrona Ventures, a Seattle-based venture capital firm and investor in PayScale’s previous venture investment rounds.
Payscale raised $7m in Series B funding from Trinity Ventures, Fluke Venture Partners, Madrona Vwhich followed a $3.2 million funding round in 2004.
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