bhub Secures $20M Funding to Expand LatAm Back-Office Services

BHub Secures $20 Million in Series A Funding

BHub, a company providing back-office SaaS solutions, has announced a new funding round. This investment arrives only three months following a $4.4 million pre-seed investment.

Investment Details

Monashees and Valor Capital Group spearheaded a $20 million Series A funding round. Additional participation came from QED Investors, Picus Capital, and Clocktower Technology Ventures, demonstrating strong confidence in BHub’s potential.

Focus on Latin American SMBs

Based in Brazil, BHub offers a comprehensive “back-office-as-a-service” solution. This includes essential functions like bookkeeping, CFO services, and legal/HR support. The aim is to allow small and medium-sized businesses (SMBs) in Latin America to concentrate on their primary operations, according to Jorge Vargas Neto, BHub’s founder and CEO.

Founder's Experience

This marks Neto’s third venture in the financial sector. He previously led Zen Finance, acquired by Rappi in 2020, and Biva, which was sold to PagSeguro in 2017. A challenging experience during the Rappi integration, involving unexpected capital gains taxation and a rapid bookkeeping overhaul, fueled his passion for simplifying back-office processes.

Identifying Market Needs

Neto explained that the company’s vision was shaped by extensive market research. Over 500 entrepreneurs initially expressed interest, leading to 300 detailed interviews. These conversations revealed significant pain points in business administration across Brazil and Latin America.

Service Offering and Pricing

BHub’s services are accessible through a monthly subscription, starting at $349. Subscribers can integrate the platform with their existing financial systems. A unified financial dashboard provides a central view of all data, alongside a chat function for support and reporting requests.

Addressing a Critical Market Gap

In Brazil, a substantial number of businesses ceased operations in 2020. This was due to a combination of the pandemic and limited financial literacy. Brazilian law mandates the use of a third-party accountant for all businesses. Neto believes BHub can differentiate itself by leveraging technology to deliver a superior service, particularly for startups.

Rapid Growth and Future Plans

The Series A funding was secured quickly due to strong product-market fit, consistent growth over three months, and high customer referral rates. Currently, BHub serves 134 companies.

Expansion and Hiring

The company intends to expand its team significantly, with plans to hire 100 individuals across various departments. These include engineering, technical roles, accounting, legal, HR, marketing, and customer service. The goal is to grow the customer base to between 2,000 and 2,500 by the following year.

“Maintaining our current growth trajectory will enable us to achieve these ambitious targets,” Neto stated.