Localyze Raises $12M to Simplify Global Hiring & Relocation

Localyze Secures $12 Million Series A Funding for Global Relocation SaaS

Y-Combinator-supported Localyze has successfully raised $12 million in Series A funding. Blossom Capital spearheaded the investment round, which is designed to bolster the company’s Software-as-a-Service (SaaS) platform.

Investment Details and Participants

The funding round also saw participation from previous investor Frontline Ventures. A cohort of angel investors contributed as well, including Andrew Robb (formerly of Farfetch), Des Traynor, co-founder and CSO at Intercom, Hanno Renner, co-founder and CEO at Personio, David Clarke, ex-CTO of Workday, and Michael Wax, CEO of Forto.

Significant Revenue Growth

Localyze, founded in 2018 by Hanna Asmussen, Lisa Dahlke, and Franzi Löw, experienced a remarkable 300% surge in revenue during the first quarter of 2021. The company is headquartered in Hamburg, Germany.

Current Customer Base

The startup currently serves a diverse clientele, including prominent companies such as Free Now, Trade Republic, Babbel, Thoughtworks, Tier Mobility, DeepL, Forto, and Personio.

Pandemic-Driven Demand and the Rise of Remote Work

Localyze attributes the increasing demand for its services to the pandemic-induced shift towards remote work. This has prompted employees to re-evaluate their preferred locations.

Streamlining Relocation Processes

The SaaS platform aims to simplify the complexities of international relocation. It automates administrative tasks related to visa applications, work and residence permits, and registration. Furthermore, it provides assistance with housing and banking in the destination country.

“We observed a temporary negative impact from COVID-19 in 2020,” explains CEO Hanna Asmussen. “However, we remained confident in our business model because we recognized that relocations are not solely driven by company mandates.”

Asmussen continues, “Our surveys revealed that 98% of internationally relocated individuals desired the move independently of their employers. While some may opt against relocation, increased flexibility through remote work creates more opportunities for others.”

Platform Capabilities and Future Growth

To date, Localyze has facilitated the international relocation of over 2,000 individuals from more than 100 countries. The company believes this is only the beginning.

Relocation as an Employee Benefit

“Relocation is increasingly viewed as an employee benefit,” Asmussen argues. “The number of individuals relocating internationally during their careers is growing substantially.”

Projected Increase in Employee Relocation

Prior to the pandemic, approximately two million people relocated for work within Europe annually. Localyze cites a PwC study indicating that employee relocation is projected to increase by 50% as the world emerges from the pandemic.

Asmussen suggests, “Currently, around 20% of the global skilled workforce is mobile. However, this figure is expected to rise to as much as 80% within the next decade.”

Automated and Streamlined Processes

Localyze’s SaaS is engineered to simplify and support staff relocations and cross-border hiring. It offers digital tools to automate administrative processes and track cases. This assists both companies and employees in navigating complex immigration requirements.

“Our software automates significant portions of the processes surrounding global mobility,” Asmussen clarifies. “At its core, our technology employs a pipeline system that maps all possible pathways for an employee to enter a country.”

“This pipeline is then matched with the employee’s characteristics – such as nationality, family status, and education – ensuring they receive relevant information throughout the process. This allows our case managers to focus on individualized inquiries.”

No-Code Solution for Scalability

“A key advantage of this pipeline system is its no-code architecture,” Asmussen emphasizes. “Combined with our Content Management System (CMS) for content editing, we can rapidly expand the software’s usability to new countries and use cases.”

“On the HR side, our software facilitates the management and tracking of all employee relocations. It provides notifications about changes or required actions. HR managers can easily initiate a case or transfer information through integration with their Human Resource Information System (HRIS), and we handle the rest.”

Human Support and Personalized Task Management

Asmussen highlights that the platform’s core strength lies in automating paperwork, supplemented by human support from dedicated case workers. These workers address user questions and resolve issues.

Case types, such as visa applications or extensions, are broken down into individual tasks. The specific tasks are determined by the individual’s characteristics (origin, family, salary, etc.).

“Essentially, we’ve built a decision tree with 30-50 variations per country, based on the specific rules,” Asmussen explains.

“Employees view this as a personalized to-do list within their dashboard. Case managers are available for questions and additional guidance when challenges arise.”

“Thanks to the automation engine, we currently operate at an 80% gross margin.”

Pre-Check Feature for Informed Decision-Making

Localyze also offers a “pre-check” feature. This allows companies to assess the feasibility of a potential relocation, including salary limits and estimated timelines, aiding in informed hiring decisions.

Accelerated Growth and Expansion Plans

The startup reports consistent month-over-month growth exceeding 30% as demand for its services increases.

Series A Funding Allocation

The Series A funding will be used to capitalize on this growth by expanding into new regions. Localyze will initially focus on major hubs for international talent in Ireland, Spain, Portugal, the Netherlands, and the U.K., targeting high-growth companies across Europe.

Customer Growth Projections

Currently, Localyze has over 120 customers and anticipates doubling this number by the end of the year.

The company also expects existing accounts to increase in value, with larger Annual Contract Values (ACVs) and strong growth over time. Localyze offers tiered pricing based on usage.

European Focus

Europe remains the primary focus of Localyze’s business. All supported cases involve relocating staff to the region from around the world and within Europe itself.

“The most popular destinations are Germany, Ireland, Spain, and the U.K.,” Asmussen states. “With this funding, we aim to accelerate our expansion in the U.K., Ireland, Netherlands, Portugal, and Spain, alongside our core market, Germany. We’ve been operating in these markets and now intend to strengthen our go-to-market strategy across Europe.”

Team Expansion

Localyze’s 25-person team is expected to at least double by the end of the year. The company plans to hire across all departments, with a particular emphasis on expanding engineering and product teams to support scaling. Sales and customer support capacity will also be increased.

Competitive Landscape

Asmussen identifies Estonia-based Jobbatical as its closest competitor in the relocation support space, sharing a similar digital focus.

She also mentions Topia as offering competing services but notes its greater emphasis on software for HR professionals and integration partners, contrasting with Localyze’s provision of both HR and employee portals, coupled with its “automation engine.”

Localyze differentiates itself from “more traditional” relocation agencies (such as Cartus and Graebel) by offering “end-to-end support” in a fully digital format. This provides users with “full visibility and transparency” and streamlines processes in a historically complex field.

The Future of Work and Global Mobility

The increased flexibility of work and the mobility of the global workforce are expected to be lasting legacies of the pandemic. Localyze was already well-positioned to support these trends, making it poised for growth as demand increases in the coming years.

Rising employee mobility may make software services assisting relocations and cross-border hiring a “must-have” for businesses, particularly as competition for talent intensifies with the rise of remote work opportunities.

“In 2021, companies will define their post-COVID-19 strategies, with many maintaining locations as part of their people strategy. They will also seek to offer greater flexibility in location choices, potentially creating new talent hubs and a blend of remote and in-person work. This will lead to increased cross-border operations and employee mobility, both short and long term,” Asmussen predicts.

Blossom Capital’s Ophelia Brown commented on the Series A funding, stating: “Access to top talent is critical for businesses of all sizes, but for high-growth enterprises, it’s essential to remove any obstacles to accessing skills and abilities from anywhere in Europe. Localyze eliminates these barriers. Companies can focus on their core objectives while employees feel confident that their relocation – often a major life decision – is handled efficiently and seamlessly.”