Hibob, a Tel Aviv provider of cloud-based HR and benefits management software, today announced that it’s raised $20 million in an extension of its series A round from a raft of investors, including Bessemer Venture Partners, Battery Ventures, Fidelity Ventures, Eight Roads Ventures, Arbor Ventures, and Presidio Ventures. It comes after a $7.5 million seed round in 2016 and the initial $17.5 million series A in April 2017, and brings Hibob’s total venture capital raised to $45 million.
CEO and cofounder Ronni Zehavi says the cash infusion will accelerate Hibob’s expansion into the U.S. and Europe — expansion that’s already underway. The startup’s grown 460 percent year-over-year since 2015, he says, and counts among its “hundreds” of customers companies like Monzo, Etoro, Happy Socks, Ironsource, Receipt Bank, Fiverr, and Karmarama.
“There is a paradigm shift in the way people work, and HR is shifting from a system of records and resources to a way to manage relationships and productivity,” Zehavi added. “Companies need the right tools to develop and maintain top talent as they grow from hundreds of employees to thousands. We are pleased that our investors understand the great need in this market and know that we are poised to deliver the most innovative and intuitive product that will allow businesses to flourish in the rapidly evolving world of work.”
Zehavi, who formerly served as senior VP and general manager at Akamai’s security division, founded Hibob roughly four years ago with Amit Knaani, Andy Bellass, and Israel David with the goal of modernizing everyday HR workflows. Its flagship product — Bob — features a dashboard where administrators can quickly see which workers are in or out, sick or working remotely, traveling or celebrating a birthday, or otherwise indisposed. Employees populate a customizable (and downloadable) org chat within Bob, adjacent to handy shortcuts to employee contracts, handbooks, expense reports, appointment scheduling and equipment ordering templates, and other important company files.
Bob’s onboarding suite automatically imports things like personal info and policy docs, and encourages new employees to share their interests or join in social groups organized by coworkers. Its built-in automation tools streamline approving, reporting, and timesheet tracking, and Bob’s robust marketplace of benefits, healthcare, pension enrolment, and payroll offers integrity checks and approval flows intended to simplify the report submission process.
That’s all in addition to integrations with third-party platforms like Slack, Workable, GreenHouse, Aviva, Canada Life, and UNAM.
Hibob has a wide-ranging toolset, to be sure, but the HR tech market — which is expected to reach $22.5 billion by 2022 — isn’t getting any less competitive. There’s Zenefits, which has raked in over $500 million since its launch in 2013, and Gusto, which has raised more than $300 million. Earlier this year, Justworks secured $40 million to grow its HR, payroll, and benefits platform, and just over two years ago, New York HR startup Namely raised $50 million.
Still, investors like Eight Roads Ventures Europe’s Davor Hebel have confidence that Hibob — which currently employs 130 people across its New York, London, and Tel Aviv offices — is well-positioned for growth.
“Hibob is the perfect partner for companies that strive to put their people first, but lack the right tools to attract, engage, and retain them,” Eight Roads Ventures Europe’s Davor Hebel. “Hibob can support the evolution of high-growth companies with its easy-to-use, next-generation tool, allowing teams to maintain all-important company culture as they expand into new locations and increase headcount.”