hr tech
HR tech startup PayFit becomes Europe's first unicorn of 2022
January 6, 2022
Europe has minted its first unicorn of 2022 with the close of payroll software developer PayFit's €254 million (about $287 million) Series E.
The round values the French startup at €1.82 billion and was led by General Atlantic with participation from existing backers Eurazeo, Bpifrance and Accel. PayFit has now raised €433 million in funding since its founding in 2015, including a €90 million Series D last March.
The European HR tech sector saw an explosion of VC investment last year as the global shift to remote or hybrid working has made managing human capital more complex. Startups in the industry raised a total of €2.6 billion in 2021 across 227 deals, according to PitchBook data—increases of 289% and 9%, respectively, from 2020.
Coincidentally, the first unicorn created last year was HR software developer Personio, which secured a $125 million Series D at a $1.7 billion valuation. Other notable HR tech deals in 2021 included temporary staffing agency Jobandtalent's $500 million fundraise—the largest round to date for a European startup in the sector—and a $145 million investment in Staffbase, a developer of internal communications tools.
PayFit will use its fresh funding to recruit an additional 400 members of staff, improve its customer service and software, and expand into new European countries. It currently has 500 employees and serves over 5,000 small businesses in France, Spain, Germany and the UK.
Featured image by WinsomeMan/Getty Images
The round values the French startup at €1.82 billion and was led by General Atlantic with participation from existing backers Eurazeo, Bpifrance and Accel. PayFit has now raised €433 million in funding since its founding in 2015, including a €90 million Series D last March.
The European HR tech sector saw an explosion of VC investment last year as the global shift to remote or hybrid working has made managing human capital more complex. Startups in the industry raised a total of €2.6 billion in 2021 across 227 deals, according to PitchBook data—increases of 289% and 9%, respectively, from 2020.
Coincidentally, the first unicorn created last year was HR software developer Personio, which secured a $125 million Series D at a $1.7 billion valuation. Other notable HR tech deals in 2021 included temporary staffing agency Jobandtalent's $500 million fundraise—the largest round to date for a European startup in the sector—and a $145 million investment in Staffbase, a developer of internal communications tools.
PayFit will use its fresh funding to recruit an additional 400 members of staff, improve its customer service and software, and expand into new European countries. It currently has 500 employees and serves over 5,000 small businesses in France, Spain, Germany and the UK.
Featured image by WinsomeMan/Getty Images
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