US-based Hourly.io, an insurtech startup providing full-service payroll and workers' compensation insurance to small and mid-sized enterprises, has raised $27 million in a Series A round led by Glilot Capital Partners, with participation from previous investors S Capital, MS&AD Ventures, J-Ventures and new investors Vintage Investment Partners and Upshot Ventures.
Hourly.io, which currently operates only in the state of California, plans to use the fresh funds to scale its platform nationwide. CEO and co-founder Tom Sagi announced in a blog post that he is targeting to have the platform available to one-third of the US population by the end of 2023, and that he wants to add more features to simplify the compensation and payroll process, although he did not specify a timeline for that.
"We plan to build in features that allow business owners to get more affordable coverage, file claims easily, run safety programs, and more," he wrote.
Sagi founded Hourly.io in 2018 together with Shay Litvak, the Chief Technology Officer, with its focus initially on payroll and workers' comp. In its 2019 seed round, the startup raised $7.15 million, and in 2021, it added the insurtech aspect to facilitate the sale of worker's comp insurance policies.