Another funding announcement from France. HR Path, an emerging HR outsourcing and systems integrator has raised $112.5 Million USD to fuel their global expansion.
While we aren’t aware of HR Path’s pricing or business model, this category is attractive to investors, normally focused on license fees and minimizing services. The large global enterprise market is driven by relationships between service providers/HROs/systems integrators and HCM tech platforms. Massive license fees for HCM platforms come along with equally massive fees for implementation, customization, configuration, ongoing maintenance, and service delivery from systems integrators/HROs/services firms. It’s a hold-over from the days of on-premise platform installation and implementation. It makes for a strong business model, based on customers that become dependent on tech service providers expertise to keep their systems running through upgrades. Investors love it.
From the HR Path press release:
HR Path, an innovative French technology company covering the entire field of human resources, announces that € 100 million have been raised through the support of ANDERA Partners. This historic investment – unprecedented for any French HR company – will fuel HR Path’s rapid expansion into international markets and strengthen its status as a key player in the HR field.“Reactivity, agility, adaptability: we often hear these words, but with HR Path, we wanted to give them concrete meaning, without setting limits. Because this adventure is also proof that French entrepreneurship knows how to be dynamic and conquering, creating jobs and able to shine internationally”Tweet thisA real French success story, HR Path was born when two French HR consultants, François Boulet and Cyril Courtin, met in 2001. Forming an immediate friendship, the team identified an opportunity to create a technology system that serves all functions of personnel management from one single platform. Thus, forming a new global HR superpower that affectively combines key-business acumen and cutting-edge technology, to offer the best HR services to any size business.The end-to-end control of the value chain, particularly designed to manage multidisciplinary teams, allows HR Path to serve the HR performance of companies like no other player in the market. The range of services offered by HR Path guarantee its customers a personalized and always responsive solution to their problems, from HR transformation consulting, to maintenance and outsourcing, through the implementation of software solutions and the management of the software change.HR Path is currently the main integrator of Cegid, Oracle Cloud for HCM, SAP SuccessFactors, Workday, HR Access, Sage and Talentsoft. At the same time, HR Path has developed its own software suite: PoweHR to address payroll management, time management, talent management, including the public sector and a decision tool.From promising start-up status to an international scale-up, HR Path is a success story of entrepreneurship made in France.In 18 years, the young company headquartered in Paris has won the trust of some 1,200 customers including 85% of the SBF 120, mid-market, SMEs and public sector entities. Currently present in 14 countries on 5 continents, HR Path employs more than 800 employees and has a turnover of 95 million euros with growth of more than 30% over the last fiscal year.The two prior fundraising events in June 2015 and March 2017 – EUR 10 million and EUR 30 million respectively – enabled it to change the scale and to assert itself as a major European player in the field of human resources, and more particularly in the digital transformation of the HR function.Thanks to the support of the ANDERA Partners investment fund and the banking pool composed of Société Générale, BNP Paribas, Crédit Agricole Ile-de-France and Banque Palatine, this third round of financing, where the 100-million-euro amount is among one of the most important recent fund raisings in French Tech, confirms the continuation of HR Path’s exponential growth.HR Path intends to continue its international expansion by strengthening its territorial network in the United States, Asia Pacific, Europe, and, depending on opportunities, in other territories where it is already established.With both organic and external growth, the goals of HR Path are to:- Reach a turnover of 130 million euros in 2020, and 240 million euros within 5 years- Increase its workforce- Become the world leader in global solutions for human resources”Reactivity, agility, adaptability: we often hear these words, but with HR Path, we wanted to give them concrete meaning, without setting limits. Because this adventure is also proof that French entrepreneurship knows how to be dynamic and conquering, creating jobs and able to shine internationally,” said François Boulet and Cyril Courtin, founding partners of HR Path.”We have been following the HR Path group and its leaders for several years now and are impressed by the growth trajectory in France and abroad, as well as by the solid entrepreneurial partnership that François and Cyril have built. At the heart of the Winch Capital fund strategy lie financing and supporting the change of scale of French champions wanting to become world leaders in their market: we are delighted to finance and support this new HR Path growth cycle, say Antoine Le Bourgeois and François-Xavier Mauron, Managing Partners of Andera Partners.Concerning HR PathHR Path, an expert and a major player in Human Resources, helps companies for whom human capital is essential in their digital transformation. Advise, Implement & Run are the 3 business lines of HR Path which contribute to the corporate HR performance. Founded in Paris (France) in 2001, its 800 talents support more