South Korea-based human resources management platform flex announced today it has closed a $32 million Series B round at a valuation of $298 million. The latest funding, which brings its total raised to $42 million, was led by Greenoaks, with participation from DST Global Partners.
The startup’s mission is to enable corporations to automate and streamline manual human resources work processes and focus more on people. Its automation tools optimize the employee experience to ensure seamless data flow across groups for use in payroll, e-signature support, on/offboarding and people analytics. It also plans to launch performance review and talents relation management tools in the first quarter of 2022.
“At flex we define HR as Human Relations, not Human Resources. We believe HR teams deserve world-class software to manage and service their employees, but today it’s clear that many organizations still use spreadsheets or legacy products to make ends meet, said Haenam Chang, CEO of flex.
The two-year-old startup will use the proceeds to scale operations to meet demand, advance its HR automation and SaaS products and increase its headcount.
The Series B funding comes on the back of growth in revenue of almost ten times, compared to last year, driven by a number of product launches and new customers. The startup has primarily been serving SMBs in the IT sector. However, flex plans to expand the addressable market by targeting new industries in the SMB space this year. It did not disclose any user or customer numbers when asked.
Currently, flex is focused on growing in South Korea by offering a SaaS solution that modernizes the HR functions and processes, which have been slow to adapt to technical progress over the past 20 years. The company said its deep understanding of cultural nuances in people management and the HR regulations in the country help flex to be well-positioned to offer a set of products tailored to South Korean businesses.
“While some companies have adopted solutions to track and improve how they manage their employees, most still rely on gut instinct or insufficient data to make ad-hoc decisions on employees. At flex, we empower customers with a reliable source of employee data and a rich set of tools to manage their people, maximizing individual and organizational performance. Our goal isn’t just to provide a great HR software solution – it’s to empower companies to better track and manage their most important assets, their people,” Chang said.
“Korea is one of the world’s largest and most dynamic economies but has historically lacked a native solution for companies to manage and pay their employees – leaving businesses frustrated and left to develop their own homegrown solutions,” said Josh Cho of Greenoaks. “Now, flex is rapidly building the country’s first next-generation human resources information system and payroll platform. We are excited about their vision for an end-to-end product that will let companies handle all their HR functions in a single place, from performance management to recruiting to payroll and more.”