Sole trader accounting platform Hnry has successfully closed an oversubscribed Series C funding round, securing $17.4 million. The investment was led by Movac's Growth Fund and included contributions from existing backer Icehouse Ventures. This new capital injection, bringing total funding to over $58 million, is earmarked to accelerate the company's expansion across Australia and the United Kingdom.
A Comprehensive Solution for Sole Traders
Hnry's platform is designed to automate the complex financial administration faced by independent contractors. When a user receives payment, the service automatically calculates, deducts, and pays all relevant taxes, including income tax, GST, and Medicare levies. The platform also provides access to professional accountants who can lodge tax returns using the collected data, offering a complete compliance solution.
Beyond tax automation, the service offers a suite of tools to manage business operations seamlessly. Users can create and send invoices directly through the application, simplifying their billing processes. Additionally, the platform facilitates personal superannuation contributions and includes a standalone app for tracking work-related travel, solidifying its all-in-one value proposition.
Differentiating in a Competitive Market
While Hnry operates in a crowded market alongside solutions from MYOB and Xero, its leadership asserts a distinct advantage. Co-founder and CEO James Fuller describes Hnry as the only comprehensive, full-stack service built specifically for the sole trader experience. He contends that competing products are often generic point solutions that fail to address the full scope of a freelancer's needs.
Fuller believes that sole traders have long been underserved by traditional accounting software, which can be bloated and overpriced. He states that these professionals are tired of being marginalized and desire a service that handles everything for them. Hnry aims to eliminate administrative burdens and confusing jargon, allowing users to focus on their core work and passions.
Fueling International Expansion
The new funding will significantly bolster Hnry's presence in Australia, home to approximately 1.7 million sole traders. The company plans to "supercharge" its growth, building on a strong foundation of word-of-mouth referrals which account for up to 40% of new sign-ups. This strategy aims to capitalize on the platform's proven market fit and accelerate customer acquisition with enhanced marketing efforts.
Hnry is also setting its sights on the United Kingdom, a market with an even larger population of sole traders. Early results from the UK are highly promising, with growth reported at six times the rate of its initial launch in Australia and New Zealand. Investor Movac noted that upcoming digital tax system changes in the UK present a major opportunity for Hnry to scale rapidly.
This successful $17.4 million funding round marks a significant milestone for Hnry, validating its specialized pay-as-you-go model. The investment provides the necessary resources to deepen its market penetration in Australia and capitalize on emerging opportunities in the UK. As the gig economy grows, Hnry is well-positioned to become a leading financial tool for independent professionals globally.