Personio Acquires $ 200 Million at $ 8.5 Billion as Her Small Business HR Beats Big Time – TechCrunch

Person – a start-up company from Munich, Germany, which is emerging as Workday and ServiceNow, focused on small and medium-sized businesses around the world – went on to cut funding during the Covid-19 pandemic after recruitment, salaries, people management, development and training, automation workflow and other human resources tools have found appeal especially among organizations with remote or distributed teams: it to raise almost $ 400 million for a year to meet this demand.

Now that more and more companies are moving parts of their operations back to offices and hybrid environments, Personio is doubling. The company has raised another $ 200 million with a new estimate of $ 8.5 billion, making it one of the most valuable startups in Europe right now.

Funding will be used both to continue building its customer base – which now numbers 6,000 companies with more than 500,000 employees – and to improve the platform, in particular with more automation tools to improve the way companies manage internal operations.

The funding is technically the second completion of its E series, following the first tranche of $ 270 million which closed in October.

Personio was valued at $ 6.3 billion in this first closure. Despite the increased prices, Personio feels some of the pressure on the evaluation that people are talking about and writing about, but only, admitted CEO and co-founder Hano Renner.

“After this increase in October, we doubled our revenue, but our valuation has only increased by 30%,” he said.

Greenoaks Capital Partners, which also leads the first part of the E-Series, also led this round, with other unnamed investors. (Previous supporters also include Altimeter Capital, Alkeon, Index Ventures, Accel, Meritech, Lightspeed, Northzone and Global Founders Capital.)

Renner said this offer of additional funding had been pending in reserve since October; he chose to pursue it now, partly because of the investment climate – you don’t know what might be around the corner – and partly because he wants to invest while still seeing more opportunities for growth.

Personio’s main premise is that its software is tailored to small and medium-sized businesses and the way they are likely to use the software, with self-service integration options and no special staff requirements to support it.

Initially, it made its name with its dense offering of recruitment, implementation and basic human resource management tools.

But as SMEs grew in their IT ambitions, so did Personio: the company added third-party application integrations (now 100), and last year the company began expanding into workflow automation to help manage tasks, approval processes, electronic signatures and other performance tools.

This also prompted the company to make several acquisitions to expand this set, in particular with the acquisition of another German startup called back to improve and automate the way teams manage internal ticket and knowledge management.

While Renner said the company is likely to continue to add more functionality to its platform, although it is being approached by larger businesses that want to use its software, Personio is unlikely to change its target customer size of 10 to 2,000 employees. .

“We see that the needs of small and medium-sized companies are very different from businesses, and the solutions they require are different,” Renner said. “It’s not just about the money they’re willing to spend on IT, but people are investing around it. Corporate decisions require dedicated staff who do nothing but implement and implement a tool. In a few weeks we have no additional resources to launch it. These types of solutions are just very different. ”

The company’s tools may have emerged during the pandemic, when companies that had previously conducted operations in person suddenly found themselves in need of more digital tools to keep people connected, but although people are likely to come in more in physical offices, it is unlikely that once human resource functions become digital, they will also return to privacy.

And while there are dozens, perhaps hundreds, of competitors in this space – including companies like HiBob, which also have ambitions to cover end-to-end HR, as well as many point solutions – Personio’s traction and general market trends are clearly an excellent opportunity. investors.

“Personio’s product has become an indispensable tool for small and medium-sized businesses in Europe as they have returned from the challenges of the pandemic,” said Neil Mehta, founder and managing partner of Greenoaks Capital, in a statement. “As SMEs face the possibility of economic uncertainty, Personio is a more critical platform than ever, helping customers make their human resources and pay processes more efficient and sustainable, while delighting employees and employers. We believe that Personio is one of the best SaaS companies in the world, with fast growth, a sustainable business model and exceptional leadership. We are excited to partner with Hano and his team again and look forward to continuing our journey for many years to come. ”

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