Due to the tough economic times, many companies are looking to raise additional funds. One of these is Personio, an HR startup based in San Fransisco that raised $200 million from Greenoaks Capital. The company is valued at around $8.5 billion.
The deal, which was arranged just before the start of the company’s Series E round, extends the funding round for Personio, which builds software for small and medium-sized businesses in Europe. It shows that the multiples that investors used to get for fast-growing tech companies have started to soften.
Hanno Renner, the company’s CEO, said that the company decided to raise new funds because it needed to support its rapid growth. It also plans on acquiring other companies. In May, Personio bought Back, a Berlin-based company that provides software for automating employee questions and workflows.
The company decided to raise new funds because it believed that the current economic situation was a good time to continue investing in its business. He also said that it would allow the company to make sound decisions going forward.
For small and medium-sized businesses in Europe, Personio charges around $190 a month for its software, which helps automate various HR tasks such as hiring, performance reviews and payroll. According to the company’s CEO, the recurring revenue from its customers helped investors during the recent market decline.
According to the CEO, the company shifted from its traditional focus on sales and sustainability to its core business. He said that investors started to care more about the company’s growth.
He also stated that he plans to keep the company as a private company for the long term. He noted that if the company’s funding dried up completely, it could still be profitable. He said that the company could still make money even if it didn’t increase its workforce.
The $200 million investment from Greenoaks Capital, which was led by Neil Mehta, places Personio among the top 10 most valuable companies in Germany. It also ranks among the top five most successful software-as-a-service (SaaS) companies in the world. According to Neil Mehta, Personio’s rapid growth and sustainable business model are some of the factors that attracted him to the company.
Dil Bole Oberoi
