Press release – Copenhagen & London, 23 October 2020
Danish HR-tech business eloomi has raised an additional investment round from Kennet and Vaekstfonden at €6M. The fast-growing software company is developing and providing a digital platform for businesses to manage feedback, learning, and people development, which has increased in demand during the COVID-19 crisis, and eloomi now has a company valuation at €67M. The new capital increase from existing investors will help to further boost eloomi’s international expansion.
In just a few years, eloomi has proved successful at providing a large number of businesses across the world a simple and effective digital platform for strengthening feedback, learning, and people development. At the same time, eloomi’s solution helps solve the need for flexibly managing the challenges that are at the top of the businesses’ strategic priorities when creating the workplace of the future: establishing an effective feedback culture, meeting employee expectations for personal development and building the right skills needed to secure the business’ future competitiveness.
We have had very satisfactory growth. In the last year we have welcomed over 200 new customers. In the past year where businesses across the world have experienced the impact of the COVID-19 shut-down, our revenue has grown 75% year over year. eloomi has now reached a critical mass where we can see that we can grow even quicker by further expanding internationally. This means that we will intensify our focus on the U.K. and the U.S., which are already our largest international markets.
Claus Johansen
Founder & CEO, eloomi
The investment comes on top of a $12 million Series A Round investment in 2019. British-American private equity investment firm Kennet Partners together with Danish Vaekstfonden are behind the new investment.
Businesses across the world are looking to restart post-COVID-19. To support this transition, eloomi’s solution offers them a great opportunity to strengthen their skills and people development. This is a great example of how eloomi continues to stay extremely relevant for the international business audience
Hillel Zidel
Managing Director, Kennet Partners
5 years of continuous growth
Since the beginning in 2015, eloomi’s success has led to significant results. Through its 100% digital business model, eloomi makes its platform available for customers via a yearly subscription. Over five years, eloomi has partnered with customers in 26 countries with 90% of the revenue coming from outside of Denmark, eloomi’s original home base. Representing 50% of eloomi’s net new revenue the U.K. and the U.S. are the most important international growth markets for eloomi, and the investment will further support expansion in these markets.
Jacob Bratting, Partner in Vaekstfonden’s department for direct investments, explains why the investors are using this opportunity to increase their investment in eloomi:
eloomi is setting an impressive standard for HR-tech solutions. They have a strong and easy to use product which is continuously developing, very competitive pricing, simple implementation and world-class customer service.
Jacob Bratting
Partner in Vaekstfonden
Jacob Bratting continues: “At Vaekstfonden we want to take part in developing the new businesses that Denmark and the world can’t afford to miss. eloomi is exactly that. During COVID-19 it’s extremely important that we have growth businesses like eloomi that can contribute to supporting a good start back at work in addition to further job creation. Vaekstfonden first invested in eloomi 3 years ago, and the leadership and Board have shown strong implementation of the ongoing international strategy to jointly create a world class SaaS business.”
The need to develop people is global
eloomi has built a digital business model with low costs and a low carbon footprint, due to among other almost zero travelling, to meet the requirements that businesses across the world are facing today with the impact of the climate crisis and pandemic.
But first and foremost, eloomi has succeeded in turning something that most businesses find complex into something that is simple, explains Claus Johansen:
“It’s about the entire employee journey. From pre-boarding and onboarding that begins before the first workday, to skills training, all the way through to feedback based learning and individualised personal development, helping strengthen acquisition and retention of employees with the right skills.
During the COVID-19 pandemic it has become even more clear that businesses throughout the world are shifting towards a need for digitalisation and eloomi plays a central role in facilitating digital people development.”
About eloomi’s international expansion
eloomi has more than 100 employees based in Copenhagen, Denmark. In August 2020, eloomi expanded its London team with 6 additional new hires and will be hiring up to 20 more staff in London by year end. The new investment will open for further expansion in the fast-growing British market and enable the establishment of teams in the U.S.
More about our growth and investment in eloomi:
eloomi Secures $12 Million Series A Funding Round Led by Kennet Partners
In 2019 eloomi announced a $12 million Series A Round led by Kennet Partners with participation from existing investor VF Venture.
Business media writes about eloomi
Danish business media, Børsen, interviewed our CEO, Claus Johansen, and Jacob Bratting from Vaekstfonden about the investment in eloomi and the plan to further boost our growth and expansion in the U.S.
The story is in Danish and subscription is required.
