EQT, a private equity company, has agreed to buy a majority stake in Japan-based HRTech company HRBrain for an undisclosed sum. The Company’s founder, Hiroki Hori, will remain a significant minority shareholder and CEO.
Established in March 2016, HRBrain describes itself as a SaaS provider designed to support the human resource strategies of Japanese companies facing labour shortages and new regulatory requirements to disclose human capital metrics such as engagement, retention, compensation, cost-per-hire, performance, etc. Headquartered in Tokyo, the startup claims to have assisted over 2,500 businesses in enhancing talent engagement and management, resulting in a 60% increase in recurring revenue, particularly for its targeted mid-to-large-sized companies.
Commenting on the acquisition, Founder & CEO of HRBrain, Hiroki Hori said:
HRBrain has helped more than 2,500 companies solve human resources issues through SaaS-type software and consulting services. In the future, we will continue to form a strong partnership with our new partner, EQT and focus even more on promoting digital transformation (DX) in the human resources field and human capital management.
HRBrain aims to expand its HRTech services following a capital commitment last week from BPEA EQT Mid-Market Growth Fund.
EQT Partner Tetsuro Onitsuka commented:
HRBrain is facing strong tailwinds such as the decreasing working population, the acceleration of the shift to job-based employment, and the demand for visualization and disclosure of human capital. We see great potential in further expanding HRBrain’s excellent products and services, and we look forward to leveraging EQT’s technology and software experience to support President Hiroki Hori and his employees as they accelerate HRBrain’s growth.
EQT, headquartered in Sweden, is one of the world’s leading investment firms, managing JPY37 trillion ($252 billion US) in assets across Asia, Europe, and North America. It primarily invests in real estate and other businesses but also owns the US-based job site JoinHandshake.c