While many startups struggle to increase budget or reduce expenses, some investors will double their previous bets. .
The preemptive investment expands Personio’s $270 million investment circular, which creates HR software for small European businesses, raised in October. Circular, have relaxed with public procurement. Other European unicorns like Klarna are reportedly looking for new investments in a third of the $46 billion valuation it reached last year.
Personio’s co-founder and chief executive, Hanno Renner, said the new budget was not necessary, but “hoarding” cash on the company’s balance sheet would allow its expansion over the next two to three years, as well as new acquisitions. The startup acquired Back, a Berlin-based corporation that automates employees’ common questions about leave and payroll, in May.
“We felt that now was the right time with everything that was happening to our balance sheet and to be able to continue to make wise investments for years to come and be able to make the right decisions for the company,” says Renner.
Personio charges Small European businesses around $190 per month to automate the regime’s HR responsibilities, such as tracking hiring, payroll, and functionality reviews. Ukraine triggered a sharp sell-off in public markets, and especially in tech stocks, Renner says.
“What really replaced there is that we focused a lot more on the basics like sales, sustainability and business efficiency,” Renner says. “We’ve been strong on this, but other people haven’t cared as much in the last few years and have worried about growth. “
Renner says he plans to remain Personio as a personal company for the foreseeable long term and that he can make the startup successful by slowing investment. labor,” he says.
The $200 million investment makes Personio one of Germany’s most valuable corporations behind process exploration software company Celonis and virtual bank N26. said Neil Mehta, founder and managing spouse of Greenoaks Capital, who also led the October round.
Mehta earned a spot on Midas’ list of the most sensible tech investors in 2022 thanks to its beginnings at South Korean e-commerce giant Coupang and its investments in Stripe, Checkout. com and Robinhood.