Commerce Conversations

The Future of Payroll, with Kirti Shenoy

Episode Summary

In this episode of Commerce Conversations, Vivek Krishnamurthy, partner at Commerce Ventures, interviews Kirti Shenoy, co-founder and CEO of Zeal. Kirti explains how Zeal began as a gig company and evolved into a payroll platform addressing the complexities of W2 labor, especially for hourly and gig workers. Traditional systems like ADP were insufficient, leading Zeal to create a more flexible, automated payroll solution. She envisions a future where large companies have fully integrated payroll systems that allow for real-time payments and personalized financial management. Kirti emphasizes building "painkiller" products—essential tools that businesses rely on, like payroll. She advises entrepreneurs to trust their instincts, focus on solving real problems, and find satisfaction in creating meaningful work. The episode also touches on Zeal's innovations, such as white-labeled apps for fast worker onboarding and payroll processing, helping companies stay competitive by offering faster payments.

Episode Notes

In this episode of Commerce Conversations, Vivek Krishnamurthy, partner at Commerce Ventures, interviews Kirti Shenoy, co-founder and CEO of Zeal. The two discuss the future of payroll technology and how Zeal is pioneering solutions in the space.

 

Here are the key takeaways:

Background and Entrepreneurship: Kirti grew up in a blue-collar environment and was inspired by her father's entrepreneurial journey. Her early interest in building and creating led her to start her own ventures. At Wharton, she stood out by wanting to start a business while others aimed for investment banking.

 

Zeal's Journey: Kirti initially started a gig company with her co-founder Pranav, which eventually evolved into Zeal after they realized a gap in payroll services for W2 labor. They identified that existing tools like Stripe weren't equipped to handle complex payroll needs like taxes and overtime calculations.

 

Challenges and Innovations in Payroll: Zeal found that payroll for hourly and gig workers is complex because their hours, pay rates, and shifts vary constantly. Kirti highlighted that traditional payroll systems like ADP were not designed to handle the intricacies of modern, flexible workforces. Zeal's solution is to automate time capture and payroll processing, which has allowed companies to pay their workers more efficiently, even daily if needed.

 

The Future of Payroll: Kirti envisions a future where large employers will have branded, fully integrated payroll systems that allow employees to manage their finances seamlessly within the company’s ecosystem. She believes that payroll will become increasingly digitized and personalized, with a focus on faster payments, automated compliance, and greater integration with financial services.

 

Lessons Learned: Kirti emphasized the importance of focusing on essential products that customers can't live without, especially in volatile markets. For her, payroll is a “painkiller” product that businesses rely on regardless of the economic climate. She also advised founders to trust their instincts and ensure their products are solving real, critical pain points.

 

Advice for Entrepreneurs: Kirti's advice to aspiring founders is to pursue work that feels meaningful and impactful, rather than work that is driven by external accolades. She emphasized the satisfaction of building something real and valuable.

In the rapid-fire round, Kirti shared her admiration for entrepreneurs like David Barrett of Expensify and Rihanna for their unique approaches to business growth. She also hinted at a passion for public policy, which she might pursue if not running Zeal.

 

The conversation wraps with a reflection on the evolving role of vertical SaaS companies and how Zeal is helping businesses manage payroll more efficiently with their innovative infrastructure solutions.