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18. January 2021
Series D Funding: Personio’s Continued Mission To Unlock HR’s Productive Potential
Bolstered by an additional $125 million of funding, and a company valuation reaching $1.7 billion, the message is clear: Personio has established permanent financial stability to continue its rapid growth, while achieving the title of ‘unicorn’ at the same time.
Take a read through this article to learn more about Personio’s recent Series D announcement. In addition, what is planned for the raised capital, and how it will help customers become even more future-proofed through digitized HR processes.
Resilient Companies Need Strategic & Successful HR
For many companies, 2020 will go down as a year of intense change and rapid restructuring. It was also a year where the true potential of HR was realized.
In the face of home office policies, mental wellness, and potential layoffs, an agile, functional, and digital HR department became a linchpin for long-term success.
"HR offers an emphasis on people that leads to corporate success. When companies give their HR departments the freedom to work strategically, only then can they be truly successful," states Personio CEO, Hanno Renner, “For this to work, we need to truly rethink the way HR is done.”
The Key Facts Behind Personio’s Series D Funding
How much capital is Personio receiving?
Personio is receiving $125 million in a Series D funding round at a valuation of $1.7 billion, making it one of the most valuable privately-held European software companies, joining the ranks of other German startups with valuations of more than $1 billion, including Flixbus, Celonis, and N26.
Who participated in this round of financing?
This financing round was led by existing investor Index Ventures, which has already accompanied software companies such as Slack, Dropbox, and Zendesk to their IPOs. In addition, other existing investors Accel, Lightspeed Venture Partners, Northzone, Global Founders Capital, and Picus also participated. Meritech Capital is participating for the first time as a co-lead investor.
What will happen with the raised capital?
Personio will use the additional capital to drive our expansion throughout Europe and further develop its existing software offering for customers.
Venture Capital’s Trust In Personio’s Mission
Since its Series C funding, exactly one year ago, Personio has remained financially well-rounded and positioned for growth. The decision was made, though, to take up an offer from existing investors to embark on the next round of financing.
Now, Personio is even better positioned for the years to come, in helping HR Managers across Europe evolve into strategic partners and growth drivers within their own companies.
Since its founding, Personio has now received $250 million in total capital. This includes support from investors who have helped well-known software companies, such as Slack and Dropbox, on their own journeys to market leadership and dominance.
Alex Clayton, General Partner at Meritech Capital: “Given Personio’s success over the past five years, and the immense market potential, we believe the team around Hanno will build an equally successful and meaningful company.”
This financing is also proof of the growing importance of HR software. Covid-19 has both driven digitization across industries while heightening the massive role HR can play in company success. As Hanno Renner puts it, “In the long term, the companies that succeed will be those that invest in their HR — and, accordingly, in their employees.”
At A Glance: Personio’s Plans for 2021
Personio is leveraging its freshly-acquired capital on multiple fronts. Here is the Personio roadmap for 2021:
Expanding the product’s core capabilities to cover more HR processes to help teams and additional departments succeed in their roles.
Launch the Personio Marketplace with new features that enable customers to automate workflows across tools like Slack, Microsoft Teams, and other HR-related software solutions.
Continuing the growth of the DACH region and investing in recently-entered European markets (Spain, UK, Nordics, Benelux).
Expansion into other European markets, such as France and Italy.
Doubling the number of employees from 500 to 1,000 by the end of 2021 — across its headquarters in Munich and offices in Madrid, London, and Dublin.
Laying The Groundwork For The Future Of HR
The future of HR is unlikely to look anything like our world pre-pandemic. Companies must now decide how they will live in, and shape, the new normal.
When it comes to digitization, this all means one thing: don’t hesitate. It’s time to look ahead, take charge, and make a change. That’s because digitization, and all its benefits, results in resilient companies who survive — and thrive — in the face of crises.
That’s why it’s time to give HR professionals the tools they need to focus on work that creates value for employees. After all, HR can only be strategic once it excels at operations.
Personio has already helped over 3,000 HR teams across Europe. That said, there are still over 1.2M small-and-medium-sized businesses leaving their productive potential untapped. This is a massive opportunity, both for those companies and for Personio.
All in all, the HR industry is only at the beginning of its transformation. Those who are ready to embrace change can start laying the groundwork for long-term success today.