Hibob Raises $150M at $1.65B Valuation - HR Tech News

Hibob Secures $150 Million in Series C Funding

Following a substantial funding round for Personio, a key competitor in the HR technology sector, Hibob has also successfully raised capital. The London-based company, which provides an all-inclusive platform for managing diverse human resources functions, has closed a Series C funding round totaling $150 million.

Company Valuation and Investment Details

This funding round has established the company’s valuation at approximately $1.65 billion, a figure previously circulated in market reports. The investment was spearheaded by General Atlantic, with participation from existing investors including Bessemer Venture Partners, Battery Ventures, Eight Roads, and Entrée Capital.

Hibob’s previous funding occurred roughly ten months ago, a $70 million round finalized in December 2020, led by SEEK and Israel Growth Partners. Since then, the company’s valuation has more than tripled, reflecting the current high demand for HR solutions.

The Evolving Landscape of HR Technology

Traditionally, human resources tasks – such as attendance tracking, compensation management, payroll processing, benefits administration, and employee surveys – have been perceived as routine and often bureaucratic. However, this perception is shifting.

Impact of the Pandemic

The widespread adoption of remote work, spurred by the COVID-19 pandemic, has fundamentally altered how we interact with our jobs. Consequently, HR systems have become increasingly vital for tracking employee activity and fostering connectivity.

Hibob, marketing its platform as “Bob,” reports substantial revenue growth over the past year. The company’s strategy centers on presenting a contemporary approach to HR, incorporating collaboration tools and other features.

Hibob’s Vision for the Future of HR

“Our mission is to modernize HR technology,” stated Ronni Zehavi, Hibob’s CEO and co-founder, alongside Israel David. “We are a people-management platform designed for the modern workplace, whether remote or collaborative. We aim to create an engaging system, rather than a cumbersome record-keeping platform.”

Global Reach and Customer Base

While originating in Israel, Hibob’s headquarters are now located in London, with an additional office in New York. The company currently serves 1,500 mid-sized clients across 134 countries.

Currently, approximately 65% of Hibob’s customer base – including companies like Ebury Partners Ltd., G.Network, Revolut, and Cazoo – is situated in the U.K. and other European markets. The new funding will be allocated, in part, to expand its international presence.

Trends in HR Tech

Recent years have witnessed a surge in HR tech startups, mirroring trends in broader enterprise IT. This has led to a proliferation of specialized solutions addressing specific aspects of the HR process, such as payroll, benefits, recruitment, and employee satisfaction.

However, the industry often gravitates towards comprehensive platforms, offering streamlined management and potential cost savings. In the mid-market segment, companies like Hibob and Personio follow in the footsteps of established players like Workday and SAP.

Comparison with Personio

Personio, a comparable company, caters to a broader range of businesses, including smaller enterprises. Its recent funding announcement valued the company at $6.3 billion, with plans to integrate wider workflow automation, enhancing data flow between HR systems and other applications.

It remains to be seen whether Hibob will pursue a similar strategy or chart its own course for platform evolution. Given HR’s central role in overall business operations, numerous avenues for development exist.

General Atlantic’s Perspective

“Hibob has developed a solution that effectively meets the needs of contemporary, evolving businesses,” commented Anton Levy, co-president, MD and global head of tech at General Atlantic. “We have been monitoring the company’s progress for some time, and consistently positive customer feedback confirms that Hibob’s platform is now a critical component of HR technology infrastructure. This investment represents our sixth in an Israel-based company in under two years, demonstrating our confidence in the country’s market. We are eager to support the company’s global expansion and its ongoing redefinition of employee engagement and HR technology.”