The Chilean startup , which has reached a valuation of US$850 million, will use the capital to boost its expansion in Brazil and increase its investment in R&D.
Buk, the Chilean HR Tech, today closed its third Series B capital raise for US$50 million, led by the international venture capital firm Headline, with the participation of its first investor, Greenoaks, as well as Base10, Workday, and Endeavor Catalyst, reaching a total valuation of US$850 million.
The company, which operates in Peru, Chile, Colombia, Mexico and soon Brazil, will use the capital for market expansion and investment in research and development (R&D).
In terms of expansion, Buk will double its team in Mexico to accelerate growth in the country, consolidate its arrival in Brazil and strengthen its benefits ecosystem.
At the same time, it will continue to prioritize product quality through constant investment in R&D.
“While capital raisings are a means to an end, the fact that each capital raising has been at a considerably higher valuation is a clear sign that we are on the right track,” explained Jaime Arrieta, CEO of the company, adding that “it is also a recognition of a job well done; even more so for a company born and formed in Latin America. It means that the talent and vision of our region can cross borders and compete on equal terms with international companies.”
"It is clear to us that Buk will become the market leader in payroll and human resource management systems (HRIS) in Latin America," said Shalini Rao, General Partner and Head of Headline's Growth Strategy.
"The execution by the founders and their team to date has been world-class. They have scaled products and entered new markets while maintaining high efficiency. We are thrilled to partner with them and excited for all that is to come."
Regarding how they expect to continue growing in the region, Arrieta said: “Although today we already impact more than 1.5 million users in 7,000 companies that use our solution, we are just getting started. Outside of Chile, we are doubling the number of clients year after year, but we still do not even reach 1% of the 200 million workers in the markets where we operate. We still have a long way to go, countless organizations to transform and new solutions to develop, with the goal of continuing to improve people's work experience.”
“For too long, businesses in Latin America have been forced to settle for limited HR and payroll solutions, making it nearly impossible to make data-driven decisions,” said Anlei Tang, Principal at Greenoaks.
"Buk has changed this reality. By developing a platform in Latin America designed specifically for companies in the region, Buk allows them to rethink how they hire, pay, train and manage their teams, turning HR and payroll into a competitive advantage rather than just a service. We are convinced that Jaime and his team are just beginning to build a solution that will be essential for any company in Latin America, and we are excited to continue strengthening our collaboration," Tang added.
READ ALSO:
Santiago Lira, co-founder of Buk: “Retaining talent and keeping them motivated impacts results”
