Chile's Buk Raises $50M for HR Management Platform - $417M Valuation

Chilean HR Platform Buk Secures $50 Million in Series A Funding

Buk, a Chile-based developer of a human resources management platform geared towards Latin American businesses, has announced the successful completion of a $50 million Series A funding round. This investment has resulted in a company valuation of $417 million.

Significant Funding and Regional Impact

This financing is particularly noteworthy as it represents one of the largest, potentially the largest, Series A rounds ever secured by a Latin American startup. Consequently, Buk now ranks as the third most highly valued startup in Chile, following Cornershop and NotCo.

Traditionally, the majority of venture capital funding in Latin America has been directed towards Brazil. More recently, Mexico has also seen increased investment. However, other nations within the region, such as Chile, are now attracting substantial interest from global investors.

Bootstrapped Beginnings and Key Investors

Remarkably, Buk operated on a bootstrapped model for its first five years of Software-as-a-Service (SaaS) operations. The company’s initial institutional investors include San Francisco-based Greenoaks, who spearheaded the Series A round, alongside SoftBank.

Adding to this, a collective of founders from prominent unicorn companies – including Rappi, Kavak, Konfio, GBM, Ualá, and Brex – also participated in the funding round.

Buk’s Platform and Services

Established in 2017 by Chilean founders Jaime Arrieta, Santiago Lira, Teresita Morán, Felipe Sateler, and Ricardo Sateler, Buk offers a cloud-based platform designed to facilitate comprehensive human resources management.

The platform supports companies in managing all aspects of their workforce, from salary payments to professional development initiatives. Key features include company climate surveys, performance evaluations, recruitment tools, and attendance tracking, all with the aim of fostering a more positive work environment.

Growth and Revenue Performance

According to Buk CEO Jaime Arrieta, the company has experienced consistent organic growth, primarily funded through revenues generated from its sales. While specific revenue figures remain undisclosed, Arrieta revealed a 151% increase in annual recurring revenue (ARR) in September 2021 compared to September 2020.

“We have consistently doubled in size annually without relying on institutional funding,” Arrieta stated. “However, our strong performance, unique value proposition, and the breadth of our product offering, which sets us apart from competitors, attracted investment from firms like Greenoaks and SoftBank, eager to accelerate our expansion.”

Current Client Base and Infrastructure

Currently, Buk serves over 4,000 clients across diverse industries in Latin America, including educational institutions, investment banks, fast-food chains, and law firms. The platform processes payroll for more than 400,000 employees each month.

Buk’s technological infrastructure is hosted on Amazon Web Services (AWS) servers, granting access to a wide range of tools within its ecosystem. The company emphasizes robust data security, performing daily backups to ensure service continuity even in the event of external data failures.

Social Responsibility and Future Plans

Buk demonstrates a commitment to social responsibility. During the COVID-19 pandemic, the company launched Buk Starter, a free digital remuneration tool for businesses with up to 20 employees. This tool is now utilized by 4,000 small and medium-sized enterprises (SMEs).

The newly acquired capital will be primarily allocated to accelerating growth in Mexico, strengthening market position in Colombia and Peru (where expansions occurred in 2019 and 2020), enhancing technology and product development, and pursuing strategic acquisitions within the region. Buk recently completed the acquisition of CTRL, a Chilean assistance company.

The company intends to increase its market share in each operating country over the coming years. In September alone, Buk reported month-over-month growth of 7% in Chile, 20% in Colombia, and 23% in Peru.

Workforce and Investor Portfolio

Buk currently employs over 300 individuals, with women comprising 50% of the workforce.

Greenoaks’ investment portfolio includes companies such as Kavak, Discord, Robinhood, Stripe, Rippling, and Toast. SoftBank has previously invested in Slack, Uber, Rappi, Alibaba, Didi, Flipkart, and ByteDance.

Greenoaks’ Perspective

Neil Mehta, founder and partner at Greenoaks, stated, “HR software serves as the central repository for a company’s employee data, supporting vital functions like payroll, benefits, and people management. However, Latin American businesses have historically relied on either inadequate in-house solutions or poorly adapted imported software.

Buk is developing an HRIS suite specifically designed for and originating from Latin America, streamlining workflows throughout the entire employee lifecycle, from recruitment to termination. We believe the company is well-positioned to become the leading HR technology platform in the region.”