Workforce Management solution company Humanforce has secured a A$22.5 million investment from Accel-KKR. This is the first time the company, formed in 2002, has openly sought outside investment. The monies will be used to help Humanforce expand across Europe, Asia and North America.
The company provides HR, time and attendance, rostering, employee availability and payroll data. It has already managed a successful transition to the cloud and now delivers its solution as a Software as a Service (SaaS). Many of its customers are in industries that are part of the gig-economy. This brings challenges in terms of managements, HR, timekeeping and onboarding.
Bruce Mackenzie, Managing Director, Humanforce said: “The contingent workforce is a global revolution in the way we live and work. Today’s mobile worker presents multiple challenges for employers when it comes to tracking, planning and payment. This complexity has meant that traditional tech platforms in our industry simply aren’t fit for purpose, and ultimately leave both employer and worker frustrated. Partnering with Accel-KKR, we’re excited to rapidly expand Humanforce’s capacity to revolutionise the contingent workforce.”
Enterprise Times: What does this mean
There are several things that are likely to have attracted interest from Accel-KKR. The company has seen sustained growth, already moved to cloud and has an increasing customer base. This has given it a solid subscription base that will have enabled Accel-KKR to factor in risk for this investment.
It also means that it is in the right place to push into new markets. Any such expansion will cost hence the move to take money from Accel-KKR. This is unlikely to be just about the money. Expansion also requires an understanding of the markets you are moving into. Accel-KKR will be providing support through Joe Porten who now has a seat on the board.
This is becoming a very busy market segment. How well Humanforce will do and whether it has asked for enough cash remains to be seen.