BrioHR: Bringing HR Software to Southeast Asia

With the upcoming Y Combinator demo day on the horizon, an increasing number of startups from the Winter 2021 cohort are gaining attention. Among these, BrioHR stands out as a company focused on developing human resources (HR) software specifically for the Southeast Asian market.

A Regional Focus

This startup embodies a trend observed in recent ventures: adapting established software models to particular geographic regions, tailoring them to local needs, and establishing regional leadership. While this approach isn’t novel, it appears to be gaining momentum within current accelerator programs. The rise of virtual accelerators may be contributing to this, broadening the pool of potential founders to include a more globally diverse group.

Recent Funding

BrioHR has announced a successful fundraising round of $1.3 million, which includes its investment from Y Combinator. Global Founders Capital led the investment, with additional participation from East Ventures and several angel investors.

Company Vision and Location

TechCrunch spoke with Benjamin Croc, the co-founder and CEO of BrioHR, who is based in Kuala Lumpur, Malaysia. Despite the challenges posed by differing time zones, the company’s core objective was clearly defined: to provide a software-as-a-service (SaaS) HR software suite designed to comply with the legal frameworks of Southeast Asian nations.

Founding and Launch

Benjamin Croc and his co-founder, Nabil Oudghiri, established the company in 2018, formally incorporating it later that year after several months of development. BrioHR’s initial product launch occurred in the fourth quarter of 2019, targeting early adopters. A broader public launch followed in the first quarter of 2020, coinciding with the onset of the COVID-19 pandemic.

Funding Rounds

The company secured funding in two phases, one in mid-2020 and another in the third quarter of the same year, with the initial tranche being larger. BrioHR utilized a convertible note structure for these raises, with terms considered standard by Croc.

SaaS Adoption in Southeast Asia

TechCrunch inquired about the prevalence of the SaaS model in Malaysia and other target countries. The co-founder acknowledged that SaaS is less established in Southeast Asia compared to the United States – the world’s largest SaaS market – but highlighted the region’s rapid adoption of new business trends. This suggests a potentially robust subscription software market in the coming years.

Competitive Landscape

BrioHR’s competitors primarily consist of local companies specializing in individual solutions, such as payroll management. Croc believes that BrioHR’s comprehensive feature set will enable it to surpass these legacy competitors. However, the startup is still expanding its regional capabilities, currently offering payroll support in only a limited number of countries. Plans are in place to broaden this service throughout the year, with the goal of full regional coverage within two to three years.

Y Combinator Demo Day Participation

Despite already securing funding, BrioHR plans to participate in Y Combinator’s demo day to maintain flexibility. Croc indicated that the company isn’t actively seeking additional capital but would consider another convertible note with favorable terms. This is a common sentiment among companies participating in demo days.

Growth and Future Metrics

Since exiting its early-adopter phase, BrioHR has experienced a 10x growth in its user base. However, the company’s 2021 performance will provide a more accurate indication of its long-term potential. Further metrics are expected to be released in the coming weeks.

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