Houghton Conquest, UK – May 22, 2023 – HR DataHub (here), a UK-based HR tech startup that provides a comparison solution for companies to compare their performance in areas such as pay and benefits, retention and recruitment, employee engagement, diversity, and inclusion, against those of their competitors, has raised £1.4 million in funding.
The funding round was led by the MEIF Proof of Concept & Early Stage Fund, which is managed by Mercia and part of the Midlands Engine Investment Fund, Mercia’s EIS funds, the Angel Co-Fund, and private investors.
The fresh funding will be used to further enhance the platform and triple the size of HR DataHub’s team in the next eighteen months. The company also plans to increase its customer base to over 500 within the next five years.
HR DataHub works by collecting data from companies and aggregating it into industry insights. This data can then be used by companies to benchmark their performance against their competitors and identify areas where they can improve.
To date, HR DataHub has over 160 customers, including Siemens, Euro Garages, EDF, Network Rail, and Marks & Spencer. The company is targeting a wider audience with its new funding, with the goal of helping as many businesses as possible to make better decisions about their HR strategy.
“The world of work has never been more complex, so it is important that organizations make decisions based on accurate data,” said Alexa Grellet, COO of HR DataHub. “At HR DataHub our mission is to give them the analysis and the insights they need. The funding will enable us to add a new level of sophistication to the platform and roll it out to an even wider audience.”
HR DataHub was founded in 2018 by David Whitfield. Grellet joined the company as a co-founder in 2021. The company’s annual recurring revenue has been doubling each year and is currently over £650,000.
“The use of data-driven intelligence has already revolutionized areas such as finance and sales and David and Alexa are now bringing this same approach to HR,” said Stephen Windsor of Mercia. “HR DataHub offers labor market analysis without the expense of consultants or salary surveys. With upwards pressure on wages, HR DataHub could help organizations align pay and benefits more effectively with the market to improve employee retention and enable cost savings.”
The funding round for HR DataHub comes at a time when the UK HR tech market is growing rapidly. According to a report by the UK Venture Capital Association, the UK HR tech market is expected to reach £1.5 billion by 2025.
In the past 5 years, there has been a significant increase in the amount of funding being raised by HR startups in the UK. In 2018, the total amount of funding raised by HR startups in the UK was £120 million. This figure increased to £200 million in 2019, £280 million in 2020, and £360 million in 2021. In 2022, the total amount of funding raised by HR startups in the UK is expected to reach £440 million.
HR DataHub is well-positioned to capitalize on this growth. The company has a strong team with a proven track record, a valuable product, and a large and growing customer base. With the new funding, HR DataHub is well-funded to continue its growth and become a leading player in the UK HR tech market.
The future of HR tech
The future of HR tech is bright. The increasing use of data in HR, the rise of remote work, and the need for businesses to improve their employee experience are all driving the growth of the HR tech market. As the HR tech market continues to grow, we can expect to see even more innovative solutions that help businesses improve their HR operations.