German HR software and payroll-as-a-service provider VEDA has received €17 million in financing from CIBC Innovation Banking, which invested in Payapps, Ometria, and Phrase. VEDA plans to use the funding to extend its market share in the DACH (Germany, Austria, and Switzerland) region, and expand into other international markets.
The HR tech startup was recently acquired by global alternative investment firm Investcorp. It will use the funding from CIBC Innovation Banking to develop its buy-and-build strategy, prioritising payroll software companies and payroll services. It will also explore new international markets, including the Benelux, the UK, and the Nordics.
All-in-one platform for HR services
Led by CEO Ralf Graessler, VEDA based in Alsdorf, Germany, has a team of 170 employees. It provides a platform solution for digital HR management, including payroll, time and security, recruiting, personnel development, and learning management to digitise tasks and minimise administrative effort.
The company has nearly 1,200 customers, including MAN, Lufthansa, and many mid-market enterprises between 150-5,000 employees of size. In 2023, VEDA generated revenues of around €20 million.
Dr. Ralf Gräßler, CEO of VEDA, said: “The pandemic changed the game for HR departments, stretching teams of professionals to the limit as they dealt with remote working and talent shortages. VEDA’s technology provides relief by offering a whole HR platform and the option to outsource certain services. The financing from CIBC Innovation Banking will support us in our buy-and-build strategy as we expand into current markets and explore new ones. We are excited to work with CIBC Innovation Banking as we start this new era of growth.”
Sean Duffy, Managing Director at CIBC Innovation Banking, said: “We are delighted to be supporting VEDA in their next stage of growth, as they expand their market share, and explore new markets. Our funding has enabled VEDA, as part of the Mittelstand, to explore new avenues for growth and we look forward to supporting this.”
