Comment on Personio raises $125M on a $1.7B valuation for an HR platform targeting SMEs

Personio raises $125M on a $1.7B valuation for an HR platform targeting SMEs

With the last year changing how (and where) many of us work, organizations have started to rethink how well they manage their employees, and what tools they use to do that. Today, one of the startups that is building technology to address this challenge is announcing a major round of funding that underscores its traction to date. Personio — the German startup that targets small and medium-sized businesses (10-2,000 employees) with an all-in-one HR platform covering recruiting and onboarding, payroll, absence tracking and other major HR functions — has picked up $125 million in funding at a $1.7 billion post-money valuation. The Series D is being co-led by Index Ventures and Meritech, with previous backers Accel, Lightspeed Venture Partners, Northzone, Global Founders Capital and Picus all participating. The $1.7 billion valuation is a big jump on the company’s $500 million valuation a year ago, and it comes after a year where the startup has doubled its revenues, and was not on the hunt to raise, with much of its previous fundraising still in the bank. Personio currently counts some 3,000 SMEs in Europe as customers. In an interview, Hanno Renner, the co-founder and CEO of Personio, said that the startup would be using the funding to continue building out the product — which operates a little like Workday, but built for much smaller organizations — as well as expanding its presence in Europe. Although SMEs can be a notoriously challenging customer segment, Renner said that a new opportunity has emerged: a new wave of people in the SME sector have started to realise the value of having a modern and integrated 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,” he said.

 

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