Why We Invested: Worky
Modernizing HR and Payroll for better employee experience
The Human Resources (HR) and payroll sector in Latin America has been plagued by fragmented and outdated processes. Businesses often rely on a combination of tools to manage different aspects of the employee journey, leading to inefficiencies, errors, and compliance risks. This disjointed approach not only burdens HR teams but also impacts the overall employee experience. Notably, 95% of businesses in this market use tools like Excel for managing HR tasks. The hybrid and remote, post-pandemic corporate environment has catalyzed a need for flexibility and streamlining of archaic HR process management to improve employees’ experience and retain talent. Additionally, the global HR SaaS industry has been rapidly growing and is expected to reach a US$62 BN market size by 2032, a 9.8% CAGR when compared to 20221.
Worky stands out as a comprehensive HR management platform designed to address the specific challenges faced by Latin American companies, in Mexico employee Churn in 2022 was 40% compared to 18% in the US, a significantly higher number2. By integrating all HR functions into a user-friendly platform, Worky eliminates the need for multiple tools, significantly reducing errors, saving time, and cutting costs. Its emphasis on compliance with local labor laws ensures that companies can confidently navigate the complexities of payroll and social security obligations. The Company is filling a massive gap by serving traditional companies that have managed HR processes manually, tapping into a US$3 BN market in Mexico alone.
The future of work demands flexibility, efficiency, and a focus on employee engagement. In 2023, Mexico’s formal employment grew 3%, with more and more employees entering the workforce, new tools are needed by firms to manage them3. Worky's platform is positioned to meet these needs, offering features such as Time and Attendance, a mobile app for employee self-service, and a dashboard for real-time analytics and management. The mobile app provides employee-centric accessibility to monitor benefits and perform other tasks seamlessly. This bridges the frictional dynamics associated with analog HR management, creating a valuable user acquisition channel. These capabilities not only enhance the employee experience but also provide valuable insights for businesses to optimize their HR functions.
Behind Worky's success is a team of seasoned professionals led by co-founders Maya Dadoo and Carlos Marina. Their combined expertise in payroll management, venture capital, and product development is the foundation of Worky’s strategic vision. This team's deep understanding of the market's needs and challenges has played a crucial role in Worky's rapid growth and its ability to deliver a best-in-class SaaS solution.
Our decision to invest in Worky was driven by key factors highlighting its capacity to revolutionize the HR tech sector in LatAm. 71.3% of employees consider technology to be an absolute requirement for HR areas, overall in payroll, recruitment, and employee education4. The region's HR tech market, ripe for disruption, presents a significant opportunity that Worky is uniquely positioned to seize with its innovative, integrated platform. This platform not only fills a critical gap by offering a comprehensive solution tailored to the requirements of Latin American businesses but also aligns with IGNIA's mission to back initiatives that foster digital transformation across the region. The experience and vision of Worky's leadership team reinforce our trust in their strategic direction.
We are excited to partner with Worky on their journey to redefine HR and payroll management in LatAm, with a follow-on investment in their most recent Series A (see BusinessWire article here). Their innovative approach, combined with a clear understanding of the market's needs, positions them as a leader in the HR tech space. Additionally, we're thrilled to join forces with top-tier co-investors such as QED Investors, AcadianVentures, Gaingels, ADP Ventures, Atlantico, Gilgamesh Ventures, BDEV Ventures, and Leap Global Partners. Their extensive expertise in HR Tech, Fintech, and B2B SaaS will significantly contribute to the Company's strategic development.
By partnering with Worky, we are investing in the future of work in LatAm. Congratulations to Maya, Carlos, and the entire Worky Team for the recent fundraise.
HR Tech Market Outlook for 2024 to 2034, Future Market Insights.
Rotación laboral, un problema en aumento durante, RHT.
IMSS, via Yahoo Finance
Future of Work Survey - Via Mexico Business News