Renner said that this extra funding offer was waiting in reserve back in October; it chose to exercise it now partly because of the investment climate — you don’t know what might lie around the corner — and partly because it is keen to invest while it continues to see more growth opportunities.

Personio’s core premise is that its software is built tailored to SMBs and how they are most likely to use software, with options for self-service integration and no requirements to have dedicated staff to support it.

It made its name initially with its a tight offering of recruiting, onboarding and basic HR management tools.

But as SMBs have grown in their IT ambitions, so too has Personio. The company has added third-party app integrations (which now number 100) and last year the company started to expand into workflow automation to help carry out task management, approvals processes, electronic signatures and other productivity tools.

That has also led the company into making a few acquisitions to expand that set, specifically with the acquisition of another German startup called Back to enhance and automate how teams manage ticketing and knowledge management internally.

While Renner said that the company is likely to continue adding more functionality into its platform, even though it gets approached by larger businesses wanting to use its software, Personio is unlikely to change its target customer size of 10 to 2,000 employees.

“We do see that the needs of small and midsize companies are very different from enterprises and the solutions they require are different,” Renner said. “It’s not just the money they are willing to spend on IT, but the people investment around that. Enterprise solutions require dedicated staff that do nothing else but implement and run a tool. We are in in a couple of weeks with no extra resources needed to run it. These types of solutions are just very different.”

The company’s tools may have come into their own during the pandemic, when businesses that had previously carried out operations in person suddenly found themselves needing more digital tools to keep people connected, but although people are likely to come more into physical offices again, it’s unlikely that once HR functions have gone digital, that they too will return to in-person.

And while there are dozens, maybe hundreds, of competitors in this space — including companies like HiBob that also have ambitions to cover HR end to end, as well as numerous point solutions — Personio’s traction and the general trends of the market have spelled a prime opportunity for investors.

“Personio’s product has become an indispensable tool for Europe’s small and medium-sized businesses as they’ve bounced back from the challenges of the pandemic,” noted Neil Mehta, founder and managing partner of Greenoaks Capital, in a statement. “As SMEs face the possibility of economic uncertainty ahead, Personio is a more critical platform than ever, helping customers make their HR and payroll processes more efficient and resilient while delighting employees and employers alike. We believe Personio is among the best SaaS companies in the world, with rapid growth, a sustainable business model and exceptional leadership. We are thrilled to once again partner with Hanno and his team, and look forward to continuing our journey for many years to come.”

BY Ingrid Lunden