Hibob did it again: $150MM raised in Series C funding round
Oct 13, 2021
by Ronni Zehavi
Being an entrepreneur is not an easy job, but it is the most rewarding. Like seafaring explorers, entrepreneurs lead expeditions into completely uncharted territories. We deal with uncertainty, take huge risks, dare to think big, and break boundaries. It is only with a clear vision, strong DNA, reliance on past experience, and the amazing teams that support us that we can succeed.
I’m incredibly proud to announce that we’ve raised $150 million in Series C funding. This round was led by General Atlantic, with participation from existing investors, including Bessemer Venture Partners, Battery Ventures, Eight Roads, Perpetual Investors, Entrée Capital, and Israel Growth Partners, all of whom believe in our vision to lead our market category. With Round C, Hibob has achieved a total of $274 million in capital raised since we started just six years ago.
Since then, we’ve grown from a simple idea into a leading global HR tech company with over 1,500 customers and 300 employees. We have offices worldwide: in London, New York, San Francisco, Tel Aviv, Sydney, and Amsterdam. Soon, we’ll open others in Germany and Spain. Hibob’s Series C funding round marks a true milestone, and we will use the capital to drive our global expansion and product innovation even further as we enter the next phase of our journey.
Great news for our customers: we’ll invest more in supporting your growth
As we enter this new chapter, we want to point out that some things never change. Just like always, when it comes to our customers, we love you, we care about you, we learn from you, and we know we couldn’t have come this far without your trust. I’d like to thank all of you for trusting us—from those of you who have been with us from day one to those who just joined us this week.
As an HR tech platform, we’re dedicated to keeping our culture people-focused and best serving your needs. We love hearing feedback from our customers and implementing it in the product. It’s why I’ve made speaking with customers a top priority and just completed 30 meetings with 30 customers in 30 days. As Hibob enters this new phase in our growth, we’ll continue to invest in you and provide the functionality and support you need as you grow your business.
We’ll exceed the needs of the market
For HR leaders to make informed decisions and successfully help their businesses grow, they need data. To collect that data, they need a platform employees want to engage with regularly. For us, creating bob meant redefining a user experience that customers care about by creating a modern platform that supports the modern employee journey, from hire to retire.
To meet these needs, we modeled bob’s UX on popular consumer apps and built a beautiful UI that encourages employees to engage in activities you can easily and securely track. bob includes a suite of tools designed to support the employee experience and the shift to remote and hybrid work models—all while enabling smooth and efficient HR practices across sites around the world.
But, we were only able to get to this point with the right combination of luck, foresight, and people.
When we founded Hibob:
We predicted that B2B industries would experience a shift into more remote, people-centric, and hybrid work models, sparking the evolution of the HR role into critical stakeholders in business success.
We were one of the first HR tech companies to build a platform that can truly be classified as a “system of engagement” for the modern work experience.
We identified an underserved market segment and dubbed it “The 3 Ms”: Modern; Multi-national; and fast-growing, Mid-sized businesses.
We understood the importance of the “employee experience” and its criticality to business success.
We had no way of knowing that this shift would happen so fast and drastically, that mid-sized businesses would experience explosive growth, or how the employee experience would become a top priority over the last two years. The stars aligned and gave us an incredible competitive advantage.
Our vision for the future
bob was a mature product before the world’s big shift into remote and hybrid work. As a result, our Go-to-Market strategy was ready very early on in our journey. This readiness was vital to accelerating our growth and widespread adoption by global companies. It has earned us more funding and the ability to develop bob into an even greater product.
The future of work is being redefined as we speak. It’s remote, hybrid, diverse, and flexible. Our vision is that the bob platform will be the last HR tech suite mid-sized companies will ever need to purchase. We will continue listening to our customers to give them exactly what they need to propel their businesses forward.
With this recent funding, Hibob’s plan is to invest significantly in building tools to fit organizations’ evolving needs and to acquire exceptional technologies to complement our offering, while also expanding our global presence to reach companies and their dispersed teams worldwide.
This is a huge market worth tens of billions of dollars, and Hibob is just beginning to penetrate it. As of today, we have more than 1,500 customers and a very low churn rate. We’ve grown our YoY ARR by 160% and achieved 137% NDR. In 2022, we project to grow our ARR by 130%, bringing us to five consecutive years of triple-digit YoY growth. To achieve these goals, we need to hunker down over the next few quarters and focus on:
Putting our customers first
Continuing to invest in our current line of products
Making strategic acquisitions to complement our product offering
Cultivating positive cultures for all people, whether dispersed, fully remote, or hybrid
Enjoying what we do as individuals and as a company
Maintaining this focus will help us solidify our competitive advantage against other players in the industry and keep the bar set high.