Lucca has taken a strategic leap forward. With a first round of financing worth €65 million, the French HR software specialist is now ready to play in the big leagues. A major operation in a particularly dynamic market. Experts at AURIS Finance, a mergers and acquisitions consultancy, take a closer look.
The digitalisation of business is intensifying. There is now no sector of the economy that can avoid the use of digital solutions. This applies not only to the core business, but also and above all to management software. Administrative, financial and human resources departments now use dematerialised management platforms and applications on a daily basis. Of the 26 unicorns currently operating in France, a significant number are fintechs and business management specialists.
Fundraising in support of international expansion
With this in mind, Lucca has just announced that it has raised €65 million. The funding was provided by investment fund One Peak Partners. The group, which develops HR process automation platforms for companies, has eleven solutions for HR functions (paid leave management, expense reports, annual interviews, etc.). Thanks to this round of financing, Lucca, whose 5,300 clients are mainly French, now intends to expand internationally. To underpin its development, the group intends to recruit 400 new employees over the next three years and is aiming for a turnover of €100 million by 2025.
A highly dynamic market
To develop new technologies and enter new markets, software professionals must invest in R&D and know-how. Despite macroeconomic uncertainty, funds have kept their liquidity levels high. Against this backdrop, many HR software specialists have placed themselves under the aegis of investment funds to accelerate their development. This is particularly true of Personio, which raised €200 million in October 2021. The German start-up, which specialises in HR management solutions, is now valued at $6.3 billion. Similarly, Spanish company Factorial has raised €80 million. The funds will be used to accelerate the company’s expansion in France.
Fierce competition among international players
This fundraising is strategically critical for Lucca in a climate where the sector’s major competitors are battling for a market of around 3.5 million small and medium-sized businesses. “Our international competitors have raised significant sums. I want Lucca not only to stay in the race, but to win it. That’s why I decided to raise the money. The possibility of a secondary offering has reinforced my decision. The twenty or so employee shareholders, of which I am the most senior, will reap the rewards of their hard work,” said Gilles Satgé, founder of Lucca, in a press release.
Get the support you need
In an emerging and particularly dynamic market, competition between the various players can be fierce. As well as delivering innovative solutions, time-to-market is critical. In this context, companies have significant cash requirements to finance their commercial development and to attract new prospects. AURIS Finance’s experts, with their sector-specific expertise, can help you find investors. They can advise you throughout each stage of the fundraising process.
