Upwork, a freelance marketplace, has disclosed two acquisitions to bolster a new enterprise-specific business, aiming to enlarge its market scope.
The firm, based in San Francisco, revealed the acquisition of Bubty, a workforce management tool, and confirmed an agreement to acquire Ascen, a global compliance and employer of record (EOR) company, prior to its August 6 earnings report.
Upwork plans to integrate these entities into its current enterprise segment to establish an independent business under its brand.
This strategic move enables Upwork to provide talent beyond its typical freelance pool, allowing it to enter new sectors within corporate staffing. The new division will handle roles like agent of record, employer of record, and staff augmentation.
Upwork CEO Hayden Brown told TechCrunch that the launch timing aligns well with growing demand from their enterprise clients for diverse talent resources.
“Providers today often make clients choose between flexibility and compliance, speed and scale, or digital versus comprehensive enterprise tools,” Brown stated. “Our new solution eliminates these compromises, granting customers the wide-ranging benefits they seek.”
Brown noted the enterprise segment constitutes approximately $100 million of Upwork’s $750 million annual revenue.
Upwork chose to separate the enterprise division because large organizations have distinct compliance and software integration needs compared to the smaller clients Upwork typically serves.
This separation enhances branding and focus, Brown added.
Upwork evaluated over 100 companies for this purpose, ultimately selecting Bubty and Ascen due to their individual strengths and synergies. Upwork piloted them separately and together.
“The power of these pilots showed how impactful their technology was and how seamlessly their offerings integrated with ours, creating something new and innovative in the market,” Brown said.
The branding and complete offerings of the new business will be revealed later this year.