HiBob has raised $150 million in a new round of funding led by Farallon Capital. Alpha Wave Global and existing investors were also included in the round. This brings the total raised by HiBob to $574 million. The only odd thing is that the firm has not described this as a Series D round. It last raised capital in August 2022, raising $150 million from General Atlantic as part of a series C round (Source: Crunchbase).
HiBob, founded in Israel, is the vendor behind the rapidly expanding Bob HR platform. In a recent interview, Ze’ev Rozov, COO, HiBob, said, “We focus, first and foremost, on modern businesses. These are the businesses that are putting people first. The majority of our customers tend to have more than one location. In terms of size, they’ll probably be between a few 100 to a few 1,000 employees.”
The company has grown rapidly, has 3,500 active customers, and has raised ARR from $10 million three years ago to over $100 million in 2023. This growth attracted the attention of its new investors.
Ido Krakowsky, Investment Director at Farallon Capital, commented, “The role of technology in human capital management is constantly rising, and HiBob has consistently proven its product excellence as a mission-critical, full-service solution serving a diverse global customer base. In a dynamic environment, HiBob enables HR leaders to serve an increasingly strategic function and adapt nimbly to evolving HR priorities.
“HiBob has established itself as the go-to option for organizations looking to streamline HR processes while emphasizing talent retention, employee engagement, and data-driven decision-making. We look forward to working with Ronni and the team as HiBob enters this next stage of growth.”
Looking forward
The funding will be used to further innovate its product and expand into new geographies, though the press release omits to mention where. Rozov revealed some expansion plans, including LATAM, where it already has customers, while he noted, “We’re unlikely to open a local office in LATAM in 23.” That may change in 2024, especially with the new funding. Those other European countries or Asia are also possible.
Ronni Zehavi, CEO and Co-Founder at HiBob, commented, “Our partnership with Farallon Capital and Alpha Wave Global is a testament to our continued leadership in the HCM software category. Modern HR leaders support teams across the business and across the globe, delivering agile, data-driven people solutions to today’s toughest business challenges.
“HiBob is enabling these teams with powerful HCM capabilities, helping our customers drive engagement and keep their people at the center of every strategic initiative. In a challenging economic climate, this new funding reflects the strength of our strategy, our business, and our ability to deliver results. We value the trust that Farallon Capital, as well as our existing shareholders, have placed in us.”
Enterprise Times: What does this mean
Bob continues to expand its footprint. Its focus on newly internationalised companies is canny. It is in a prime position to replace local HR solutions in firms that are internationalising but have not globalised. However, if these companies grow, Hibob is in a prime position to retain them because of the scalability of its platform. It means they are less likely to switch to Workday or another major global vendor. Bob has a rapid time to value. That was recently noted by the 226% return on investment by SugarCRM after deploying the solution. It is a system that will appeal to many firms. It will be interesting to see how the firm continues to improve its product and where it will open an office next.
