HR Datahub, a UK-based HRTech startup which helps companies to benchmark themselves against competitors, has raised $1.7 million (£1.4 million) in a funding round led by 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.
With this investment round, the company plans to further enhance the platform and triple the size of its team in the next eighteen months. It also aims to expand client numbers to more than 500 in five years.
Founded in 2018 by David Whitfield, HR Datahub enables organisations to compare themselves on metrics, including pay and benefits, retention and recruitment, employee engagement, and diversity and inclusion. Customers share their data which is aggregated by the platform and turned into industry insights to help make informed decisions. The startup is now used by 160 organisations, including Siemens, Euro Garages, EDF, Network Rail and Marks & Spencer.
Speaking about the capital raised, Chief Operating Officer of HR DataHub, Alexa Grellet, said:
The world of work has never been more complex, so it is essential that organisations make decisions based on accurate data. At HR Datahub, our mission is to give them the analysis and 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.
Headquartered in Bedfordshire, HR Datahub’s annual recurring revenue has doubled yearly and is currently over £650,000.
Stephen Windsor, Mercia Asset Management, added:
The use of data-driven intelligence has already revolutionised areas such as finance and sales, and David and Alexa are now bringing this same approach to HR. HR DataHub offers labour market analysis without the expense of consultants or salary surveys. With upwards pressure on wages, HR Datahub could help organisations align pay and benefits more effectively with the market to improve employee retention and enable cost savings.
In 2020, HR Datahub had raised £1m in a seed funding round led by the Angel CoFund and backed by an angel syndicate of seasoned HR experts, including Chris Bruce and Michael Whitfield, founders of Thomsons Online Benefits; Oliver and Ben Black, founders of My Family Care and Tinies businesses; and HR DataHub’s new Chairman, Ian Dyke.