Israel-based Hibob announced a $150 million Series C round of venture capital at a $1.65 billion valuation for its SMB-focused core HR platform. This brings its total raised to $274 million and mints Hibob as an HR tech unicorn. The round was led by General Atlantic.
Hibob’s product has a sweet spot with customers having less than 1.000 employees. The user experience is modern and clean. HiBob is more known for employee communications and engagement than core HR process and workflow. The system offers a very visual way to organize a company’s org chart, teams, groups, and communications in a “newsfeed” like interface. While there are exceptions to every rule, the lack of an integrated payroll system as part of the platform creates additional integration points across time and attendance, benefits, and compensation. As Hibob looks to grow into its new valuation it will need to address this. These same points will open up adoption in larger middle market employers that tend to also come with more organizational complexity as well.
Room to Grow
Hibob’s global TAM is approximately $35 billion. This takes into account Hibob’s primary market segment with less than 1,000 employees, Hibob’s product category and major work tech geographies, based on the latest WorkTech TAM analysis. There is upside in the TAM as Hibob fills the product gaps mentioned above. These gaps are where SMB and middle market customers are losing time in administration of systems and using spreadsheets. These same features would make Hibob more feasible in the larger middle market segment.
$13.7 billion was invested globally in work tech through Q3 2021 across 299 deals. WorkTech Market Insiders can access insights and analysis of all of the deals in our Q3 report with a free membership.