On the heels of Personio who had a big round yesterday, one of his competitors and another big HR startup have also secured funding. Hibob, a London-based company that targets the mid-market with an all-in-one platform that handles various human resources functions, closed a Series C of $ 150 million. The financing values ââthe company at around $ 1.65 billion, the company confirmed to us. This is also the figure that appeared in the rumors leaked to the market earlier this week, before the company confirmed the news today.
General Atlantic led the round, along with former investors Bessemer Venture Partners, Battery Ventures, Eight Roads and EntrÃ©e Capital, among others. Hibob last raised funds about 10 months ago, a $ 70 million round in December 2020 (a round led by SEEK and Israel Growth Partners). Since then, its valuation has more than tripled, which shows how hot the HR market is right now.
âHotâ and HR are not two terms you could usually hear in the same sentence. Tasks that include human resources – in Hibob’s case, tracking attendance, time off, pay, pay, benefits, and investigations – are generally considered to be some of the more arid and often too unofficial about professional life.
Covid-19 and pandemic work practices – where the vast majority of knowledge workers have been sent home for much of a year or more (and some of us are still here in our kitchens) – have definitely changed the way we interact with work, so HR systems have suddenly emerged as a way to keep track of things and even help us all stay connected.
Hibob, who sells his platform as “Bob,” says last year saw triple-digit revenue growth and his opportunity was to showcase his product – which also offers collaboration and other tools – like a modern take on what HR can mean for a business.
âOur mission is to modernize human resources technology,â Ronni Zehavi, CEO of Hibob, who co-founded the company with Israel David told me last December. âWe’re a people management platform for the way people work today. Whether collaborating remotely or physically, our clients face work-related challenges. We believe that the HR platforms of the future will not be clunky systems, boring giant platforms. We think it should be different. We are a system of engagement rather than registration.
While the company’s roots are in Israel, its modern headquarters are in London with another office in New York. It has 1,500 mid-sized clients operating in 134 countries, but it currently reports that around 65% of those clients – including Ebury Partners Ltd., G. Network, Revolut and Cazoo – are located in the UK and other European countries. markets.
The funding will be used in part in an effort to harness further growth internationally to complement this existing base.
In recent years, HR technology has undergone a turning point that mirrors that of all corporate IT: the explosion of funding available to startups has spawned a plethora of point solutions specialists tackling singular aspects. the larger HR process, whether it’s payroll or benefits, or hiring and onboarding, or employee surveys and satisfaction, or training, or recruiting.
However, the biggest gravitational pull in technology always seems to bring us back to the concept of larger platforms, which in their own way are easier to run and potentially cheaper overall. In HR, those targeting small and medium-sized clients like Hibob or Personio also have a precedent in the form of Workday (and more historically from companies like SAP).
Personio is an interesting company to consider compared to Hibob: it is bigger but also has smaller companies in its customer mix. When he announced his funding yesterday at a valuation of $ 6.3 billion, he noted his next steps would be to go into broader workflow automation, bringing more data that you capture into them. HR systems (and in particular Personio’s HR systems) in other applications more efficiently.
It will be interesting to see if Hibob takes a similar path, or if not, how he chooses to evolve his own platform over time. HR, focused on people management, is sort of at the heart of how a business runs all of its activities, so there are a lot of paths it can take.
“Hi bob has created a solution that serves and anticipates the needs of modern and evolving businesses, âsaid Anton Levy, co-president, general manager and global head of technology at General Atlantic, in a statement. âWe have been following the business for years and positive customer feedback confirms that Hi bobThe platform has become an essential component of HR technology stacks. Hi bob will mark our sixth investment in an Israel-based company in less than two years, signifying our strong belief in the country’s market. We look forward to supporting the company’s global growth as it redefines employee engagement and HR technology.