# KarbonPay

Automating global payroll in the cloud


## Elevator pitch
KarbonPay automates the calculations of payroll data, across multiple countries and languages.

- Canonical URL: https://wefunder.com/karbonpay
- Entity ID: wefunder:company:69005
- Last updated: 2026-06-22T05:03:12Z
- Generated at: 2026-06-22T11:55:42Z

## Quick facts
- We are currently completing our second acquisition
- Profitable SaaS with $2.5mm ARR and 30% EBIDTA margins
- Running payroll for more than 275,000 employees every month
- 80% gross profit margins
- More than 23,000 companies running payroll each month
- Offering automated payroll in 7 countries

## Active fundraises
- wefunder:fundraise:58105: 4(a)(6) successful (USD)
- wefunder:fundraise:58106: 4(a)(6) successful (USD)
- wefunder:fundraise:38139: 4(a)(6) successful (USD)

## Story
Multinational companies face incredible payroll compliance complexity: the process breaks down when it comes to international gross-to-net calculations.So, what's the problem?Ok…. but tell me how that effects customers in the real world?(This video demonstrates a case study which is normative of the experience shared by companies running cross-border payroll)Ok, that is a mess. What do customers SAY about this?Wow, you’re not kidding. So, how can KarbonPay help?KarbonPay brings cloud-based automation to consolidate multi-country payroll into a single system, eliminating reliance on in-country partners, manual calculations, removing redundancies, and reducing errors. Leveraging technology (instant calculations) for complex international compliance gives customers access to real time data, enabling business leaders to make data-driven decisions.KarbonPay offers a single login across bordersOur single login for all our customers’ payroll needs allows us to provide analytics that are either not available with other providers or have to be manually consolidated. Typically, decision-makers are left with incomplete or inaccurate data. KarbonPay’s single-source-of-truth means that report generation is immediately accessible, allowing for customization on the fly. We open up all our payroll data to report-writing.Our single-source-of-truth also provides a much more streamlined operational process. This allows anyone to step into the shoes of the payroll personnel in the event of any disruption in normal business operations. Being cloud-based means our customers can access and run payroll in almost all emergency situations.With KarbonPay, there are no more in-country partners.In fact, our customers are often able to eliminate or vastly reduce even the number of vendors they have involved in their payroll process. All changes and reports can be made right from our system so there is no more time and expense waiting on third party vendors.We are in the process of completing an acquisition, after which our company will look as follows:Projected end of 2022 Snapshot:All of our existing revenue is charged on a per headcount per month basis.For KarbonPay payroll, we have two high level pricing schemes; single-country users and multi-country users. Single-country users are charged amounts based on the local markets. Multi-country users (cross-border) are changed based on “international” payroll pricing. XmartClock, like KarbonPay, charges per headcount per month. Direct Deposits are charged per transaction.Pricing Differentiator:Most other payroll providers (Sage, ADP and the like) charge on a per payslip basis vs. our monthly charge. This is no longer in touch with current SaaS pricing structures. Our competitors also up-charge for standard services (reports, analytics, corrections, off-cycle payruns, etc.) that customers expect to be included. KarbonPay allows customers immediate, customized access for no additional charge.Over and above our payroll product itself, the primary driver of short-term value appreciation post-acquisition is KarbonPay’s ability to add two additional revenue streams that do not exist at Target but are in high demand amongst the customer base.Direct Deposits:Our Direct Deposit service allows customers to conveniently pay their employees from our platform. Once payroll is complete, customers have the option to initiate a single cash transfer after which the system distributes payment to each employee based on their payroll calculations.Our assumptions for Direct Deposits adoption in our pro forma cash flow model are as follows:60% Target and affiliates customers (headcount) use Direct Deposits on a monthly basis.Pricing of $0.50 per transaction, once a month - in reality those who are paid every two weeks would generate two $0.50 transactions per month.Note:KarbonPay uses 3rd party integrations to facilitate payments. As such, KarbonPay never takes possession of the cash. Furthermore, while KarbonPay discloses Terms and Conditions to customers regarding 3rd party services, KarbonPay is not responsible for ensuring regulatory compliance.XmartClock:Founded in 2018Purchased by KarbonPay in June 2021At time of purchase XmartClock was producing approximately $84,000k in top line revenueWe have since grown this revenue to an annualized $144,000 (70%+ increase in 9 months of operations)Purchase price was $250,000 (2.97X multiple on revenues)Additional Countries:KarbonPay expands its territory footprint in three ways. Internally developed country rules engines (South Africa, Mexico and Philippines (soon) on platform, development roadmap for 2022 has KarbonPay developing Canada, Columbia and Brazil)Purchasing completed rules engines (use of funds to purchase rules engines for US and UK during 2022)Purchasing functionality and rules engines from existing companies (i.e. XmartClock purchase in Q2 2021 and the subject purchase of Target).Internally Developed:Using our inhouse development team we developed and launched fully compliant, automated payroll for South Africa (12th most complex payroll in the world per Alight) in September of 2020. 2021 was used to solidify our multi-country infrastructure and develop rules for Mexico (23rd most complex payroll) and Philippines (22nd most complex). For reference, US payroll is ranked as only the 26th most complex.A quick review of how we develop our payroll rules engines:KarbonPay interviews local accounting and tax advisoriesThe best 3 are selected and formally engagedWe require 3 things from these firms:Teach us all the rules and variablesProvide us with 12 months of historical payroll data, pre- and post-processingInform us of changes to regulations as soon as they are announcedThe proforma below represents the consolidation of the annual revenue and their sources derived by laying all operations on top of each other. The sources of revenue considered in the model are: KarbonPay and the continuation of the existing business with minimal funding; XmartClock and Direct Deposit income from KarbonPay’s organic portfolio, the revenues from the two Target entities (SA and SG), and the income from selling XmartClock and Direct Deposit to existing customers.This chart contains forward-looking projections that cannot be guaranteed.This chart contains forward-looking projections that cannot be guaranteed.Our software is poised to disrupt an industry expected to reach $38.4 Billion by 2027.Between 2016 - 2019 there was a 25% increase in companies using cloud-based technologies. With COVID-19 now acting as a catalyst in this migration process, world-class SaaS options are more important than ever.

## FAQ
1. **Hello, how long have you been in business and what’s your been your overall return for the last 18 months?**
   - Hi Raymond, thanks for your question. Our platform has been live since September 2020. Our customer base continues to grow with ~ 40 companies currently running their payroll with us. We're also onboarding another 50 companies as we speak. These customers are early adopters and are paying a de minimis rate in order for us to get some early validation of our product. We've enjoyed a 100% accuracy rate since we launched. Feel free to reach out if you have other questions, or book time with...
2. **Hello Brad THANKS! I just sent over a meeting invite.**
   - Excellent; I look forward to speaking with you later
3. **As an insurance broker in California, i have seen many different payroll vendors. Many include other services such as HR, compliance,Cobra etc. Does Karbon plan to either partner with a company to bundle services, such as these? Being a Benefits broker for over 25 years, emplo...**
   - Hi Ross, this is a great question. We certainly will be partnering with appropriate services in order to create an integrated bundle where there is a seamless flow of data and information. In fact, we are already in conversations with a 401(k) partner for US customers. The same will apply to health care et al. Thanks for the question, I’m happy to connect if you have further questions. 
4. **Hi. How much revenue are you generating from the current 40 companies? What are your revenue goals for the next 5 years?**
   - Hello Leonardo, my apologies for the delay in response, and thanks for your question. Our current customers are early adopters and are paying a de minimis rate in order for us to get some early validation of our product. As we continue to add countries, however, we do project significant revenue growth. If you are interested, I'd be happy to connect with you and our CFO on a call to talk you through our financial model and revenue projections (you can book time here: calendly.com/karbonpay/me...
5. **How much runway will this round carry? What is your current burn rate?**
   - Hi Justin, thanks for the question. We would look to raise an additional round after month 12 following close of this round. Currently our burn is very low (no execs getting paid, etc) and is ~ $12k pm. Don’t hesitate to let me know if you have other questions I can help with. 

## Team
- Brad Price (Founder & CEO)
- Darius Franken (Senior Software Developer / Team Lead)
- Andy Sahl (Sales Lead)
- Kyle Pearce (EMEA Ops Admin)
- Kieran Rosenberg (Automated QA)
- Gareth Price (employee)

## Q&A
- Q: I’ve got a few questions after watching the video (from 2021?): 1. Are you planning to expand to Europe? Germany (DACH) especially because there is many international companies here that are forced to use local services because they payroll regulations are insane. So they have one for every country. 2. Did you talk to We Build Bots for integration of their Services with your platform that would make it easier for customers to interact with their payroll data. 3. Did you talk to Curve (preferred) or Vitra Cash to implement travel expanses made with the business card to be directly processed in the payroll software? 4. What is your expected Valuation in the next few years? Are you planning an ipo? Are we as investors going to get dividend payments at some point? What are your plans for this and next year? Are you sharing them in detail with shareholders? Thank you
- Q: Hello, some questions please: 1) who are your competitors? 2) what is the share price? 3) what is the EB price/valuation? 4) I'm reading that the EB quota is $2mm, with max raise of $5mm? Is this correct? Thank you
- Q: Is this new raise a down round?
  - A: Hey Craig, no it isn't. This was explained in our investor webinar hosted in January which we invited all investors to attend. On StartEngine, as a result of our bonus shares offerings, the highest valuation point we sold shares at was $10.9mm.
- Q: Hi Brad, very impressive product and I know every company needs a good payroll solution. Can you please help me understand the business model under the Overview section? The calculation of the business model assumes 300 active employees, average cost $15 per employee per month -- wouldn't the annual recurring revenue be $54K instead of $540K? ($15*12*300). Thank you for your clarification!
  - A: Hi Sarah, I’m sorry I missed your question. Of course, you are totally correct, although the number that should be different is 3,000 employees instead of 300. That gives us the $540k. Our downloadable deck will show this correct calculation. Thanks for spotting this and please feel free to reach out for anything else.
- Q: Are you still in business? Where are you providing investor updates?
- Q: For anyone wondering about Karbonpay the They had a funding round at 'Republic' Sep2023 - May 2024 I tried searching the SEC for filings but found nothing - they file under the name FingoPay, LLC https://www.sec.gov/Archives/edgar/data/1807844/000199937824000004/xslC_X01/primary_doc.xml
- Q: We'd like an update Brad.
- Q: When will the new fiscal report be provided.
- Q: I'm an investor from the two previous rounds. Can you please provide more details on the share price drop from when compared to last raise on StartEngine. I see you mentioned you explained this in a Jan webinar. can you please share the link. I'm curios to understand how the evaluation went from $19mm to $13mm. Granting bonus shares to early investors shouldn't really affect the company evaluation, so curious to hear your thoughts. Thanks.
- Q: Hi Brad, Can you elaborate a little on the Ryan Kirkpatrick/XX Investments bit? From Section 31 of Form C, it seems to read that Mr. Kirkpatrick (a KarbonPay director as well as the appointed lead investor) is the voting proxy for shareholders through WeFunder and gets 10% of any distribution payable to us for the duration of our holding the shares. So it appears that if KarbonPay pays a regular dividend, bonus dividend or gets purchased, XX Investments/Mr. Kirkpatrick gets 10% of whatever proceeds WeFunder shareholders would get. Is this understanding correct? And if it is, does this practice continue if KarbonPay eventually "goes public" and gets listed on an exchange? Just asking because while a director or officer of the company holding the proxy vote for a crowdfunding issue is not unusual, this is the first time/company I've ever seen this kind of fee structure. Thanks for your input!
  - A: Hi William, XX Investments is the vehicle WeFunder has used to roll investors into one line item. The fee structure of 10% of profits to Ryan was also set up by WeFunder and was not an option for us. However, WeFunder has recently advised that the SEC did not like this set up and so they are no longer subscribing to this approach. As such, this clause is no longer relevant and no portion will be shared by XX and Ryan Kirkpatrick. Please let me know if this is clear and if you need anymore help, you're welcome to email me. Thanks!
- Q: Hello - I just found out about your company for the first timd today through the WeFunder weekly e-mail digest. I watched your elevator pitch video which looks promising in terms of solving a big need in HR. However, as I watched the video, I remembered a multi billion dollar company that is automating HR and IT named Rippling. They have been around for a few years now and are a unicorn company and they are doing a lot more in HR and IT than your focus niche on payroll. Are you aware of Rippling? What's your unique selling point and value proposition over them and other competitors in this space and what does your company offer that those types of competitors like Rippling don't?
  - A: Hi Michael, thanks for your question and for reviewing our campaign. We are very well familiar with Rippling, they are a great company with a great product. There is a critical difference between us and them, however: they offer automated payroll calculations according to regulatory requirements in the US only. Where they allow you to pay people internationally, they only allow for contractors, which are not subject to the regulatory payroll requirements. So, if you need an actual employee in another country, they can't automate that payroll calculation. That's where we come in. In the same way that they automate compliant payroll calculations for the US, we do that for other countries. Both us and Rippling also offer PEO services. Let me know if this helps. We'd love to have you on board - it seems like you understand this space quite well. Happy to answer other questions if you'd like to reach out here or through our website directly. Brad
- Q: Hi Brad. I have invested in your previous raising and would like to know where you stand in terms of revenues, your financial statements showing zero for 2020, though you are showing recurring revenue for the same year in your slides. It would be good to see 2021 revenues by months to see the dynamics.
  - A: Hi Zohrab, I've answered this in your other post but for the benefit of those who haven't seen that, our ARR is now ~ $250k. Revenues generated prior to KP revenue were generated by XmartClock, which is owned 100% by KP.
- Q: Hi Brad, one of my readers told me about your deal and suggested inviting you for an episode of Meet The Founder, the Angel Notes Podcast where I interview promising startup founders raising funds on the most popular equity crowdfunding platform. You can listen to previous episodes here: https://www.angelnotes.co/tag/meet-the-founder/ I'd love to have you as a guest. If that's of interest, just contact me through the contact form on the website or LinkedIn https://www.linkedin.com/in/manuel-bleve/ and I'll send you an invite to schedule the episode! Talking to you soon, Manuel
  - A: Thank you Manuel!!!
- Q: Hi, When does your fundraise close
  - A: Just announced 8/31!
- Q: Hey Brad. Impressive growth. You mentioned a couple of deals in the work worth 75MM. If they work out could value you much more. Why not wait till the deals are finalized and then raise money at a higher valuation? Why now?
  - A: Hi Nikhil, thanks for the question and sorry for the delayed reply. I usually get a notification from WeFunder when someone posts a question but lately that hasn't been happening. The deals in negotiation are significant in value and opportunity, however, they are both the kinds of deals that a) are going to take some time to continue to develop and b) are going to be phased. There's no 'signed deal = $75mm' switch, given their scope. Additionally, in order to fulfill the needs of the deals, we need to develop additional functionality, and that's largely what this raise is helping us do. Let me know if I can help with anything else, and thanks again for reaching out.