Focus on SME Businesses
The funding round was co-led by Index Ventures and Meritech and included previous Personio’s supporters Accel, Lightspeed Venture Partners, Northzone, Global Founders Capital, and Picus.
Last year, the startup’s valuation stood at $500 million, and after the startup’s recent huge success, it doubled its revenues; that figure jumped by around $1.2 billion. The funding round C previously helped the company to raise $75 million.
Interestingly, fundraising was not Personio’s primary objective as the majority of its previously raised funds are still in the company’s bank account. The business plans to use the money to further expand its operations in its key markets — Germany, Austria, and Switzerland.
The Germany-based company offers comprehensive HR services, including recruiting and onboarding, payroll, absence monitoring, etc. The company’s solution targets small and medium-sized enterprises (SMEs).
Right now, Personio has around 3,000 clients in Europe, all of which are SMEs. The company’s chief executive and co-founder, Hanno Renner, said Personio plans to use the proceeds to support the project and expand its business into the European market.
Renner pointed out that new business opportunities have started to arise in the SME sector as these companies have started to understand the importance of having a sophisticated HR platform.
“We started Personio in 2016 wanting to become the leading HR platform for mid-market companies, and we knew it could be a great company, but we realize it can be hard to grasp what HR really means,” Renner said in a statement.
“But I think what has driven our business in the past year has been the realization that HR is not just an important part, but maybe the most important part, of any business.”
However, Renner admitted that the market has been falling behind significantly, particularly the enterprises that were not built around technology, as many of these companies are still using software like Excel.
“Supporting them by helping them to digitize in a more efficient way has been driving our business,” he added.
All-in-one HR services provider Personio has raised $125 million in the Series D round at a $1.7 billion valuation for the company. This is a big leap for their business in terms of market valuation as last year Personio was valued at around $500 million.
About the Author
Avi Ben Ezra is the Chief Technology Officer (CTO) and Cofounder of SnatchBot and SnatchApp (Snatch Group Limited). He leads the Group’s long-term technology vision and is responsible for running all facets of the tech business which includes being the architect of the platforms and UI interfaces.