- Personio, an HR-tech firm, is one of Germany’s most valuable startups after raising $270 million.
- The firm’s valuation has risen to $6.3 billion from $1.7 billion in January.
- The median deal size for HR startups has risen substantially in 2021, according to PitchBook data.
Personio, which provides human-resources software for small and midsized businesses, more than tripled its valuation, to $6.3 billion, in a new funding round.
Founded in 2015 by Hanno Renner, a former yacht skipper, Personio helps companies manage staff and resources through its platform.
Personio last raised $125 million in January 2020 at a $1.7 billion valuation. Its $270 million in fresh Series E funding came from Greenoaks Capital Partners with participation from Altimeter Capital and Alkeon Capital.
“If you’d asked me about fundraising four weeks ago, I would have said we have plenty of capital and don’t need to raise again,” Renner told Insider. “I took a couple of meetings with this group of investors on the recommendation of another founder, and they were keen to invest. These are the right type of investors to bring on board because they will be with us for the long term, as we eventually go public and beyond.”
The deal takes Personio to about $500 million raised to date and makes it Germany’s second-most-valuable private tech startup, after Trade Republic.
Much of the new funding is set to go toward the company’s new product called people workflow automation, a tool to help stitch up data from fragmented departments within a company to avoid delays. Personio’s platform can automate the process of ensuring the right forms are in the right place at the right time, Renner said.
“We’ve worked with more than 5,000 companies in the past six years and seen how some of these processes span beyond traditional HR, so we want to help our customers more,” Renner said. “Investors were so excited by this, so want they wanted to invest at a higher valuation than January.”
The Personio deal coincides with a spike in the median deal size globally for startups operating in HR technology, according to PitchBook data.
Personio has expanded its footprint in recent years and now has about 1,000 staff members across offices in Munich, Madrid, Dublin, London, and Amsterdam. Alongside the development of its automation tool, funding will go toward expansion into new markets like France and Italy and hiring thousands of people in the coming years, Renner said.