Clare-based HR software company HRLocker has raised €2 million in funding that will fuel growth in the coming months and allow it to move into new markets.
The round was led by MACX3 Investments, Hugh O’Donnell’s investment firm, along with entrepreneurs, family offices and private investors.
The money will be used to expand into new international markets and grow its product portfolio, while also continuing to develop its Irish and UK customer base.
This is the first time the company has taken on external funding, with its founder Adam Coleman bootstrapping previous development. It currently employs about 50 people, a goal it announced two years ago.
“We’re a well-managed Irish business that’s doing well,” said Mr Coleman. Getting the right investor was key, he said, with the company already passing on one offer before Mr O’Donnell came on board. “He’s a really good fit for us,” Mr Coleman said.
Founded in 2014, HRLocker had previously said it was offering a 20 per cent stake in the company for the €2 million. Prior to the funding round, it was valued at €8 million.
HRLocker, which originally started as a HR consultancy, now offers a digital HR information system that manages the employee lifecycle, including GDPR-compliant employee databases, time management, performance management, and HR and payroll reporting. The system has 45,000 daily users and more than 700 customers.
Mr Coleman said he doesn’t anticipate any downturn in demand, although there may be some tightening in the marketplace. “I think that people will be more concerned about how to spend their money, but I think if you give them the level of return on investment that we give them, I don’t think it should affect us to any great degree.”
The company has seen significant growth in recent months, with revenue expanding 139 per cent in the 12 months ahead of the funding round.
“When it comes to digital transformation, HR is playing catch up with other business functions, such as finance and marketing,” said Mr O’Donnell.
“Since the massive shift to remote working in 2020, demand for effective, user-friendly employee management software solutions has exploded. As the first HR information system for growing companies, I firmly believe HRLocker has the team and the technology to be a global leader in this space.”
