Personio nabs $200M at a $8.5B valuation as its HR for small businesses hits the big time – TechCrunch
Summary
Personio a startup out of Munich, Germany that styles itself as a Workday and ServiceNow focused on the small and medium businesses of the world went on a funding tear through the COVID-19 pandemic after its recruiting, payroll, people management, development and training, workflow automation and other HR tools found traction particularly among organizations with remote or distributed teams. It raised nearly $400 million in one year to meet that demand.Now, with more businesses moving parts of their operations back into offices and hybrid environments, Personio is doubling down. )Renner said that this extra funding offer was waiting in reserve back in October; it chose to exercise it now partly because of the investment climate you dont know what might lie around the corner and partly because it is keen to invest while it continues to see more growth opportunities.Personios core premise is that its software is built tailored to SMBs and how they are most likely to use software, with options for self-service integration and no requirements to have dedicated staff to support it.It made its name initially with its a tight offering of recruiting, onboarding and basic HR management tools.But as SMBs have grown in their IT ambitions, so too has Personio. These types of solutions are just very different.The companys tools may have come into their own during the pandemic, when businesses that had previously carried out operations in person suddenly found themselves needing more digital tools to keep people connected, but although people are likely to come more into physical offices again, its unlikely that once HR functions have gone digital, that they too will return to in-person.And while there are dozens, maybe hundreds, of competitors in this space including companies like HiBob that also have ambitions to cover HR end to end, as well as numerous point solutions Personios traction and the general trends of the market have spelled a prime opportunity for investors.Personios product has become an indispensable tool for Europes small and medium-sized businesses as theyve bounced back from the challenges of the pandemic, noted Neil Mehta, founder and managing partner of Greenoaks Capital, in a statement. As SMEs face the possibility of economic uncertainty ahead, Personio is a more critical platform than ever, helping customers make their HR and payroll processes more efficient and resilient while delighting employees and employers alike.