German HRtech VEDA Secures €17M from CIBC Innovation Banking for Global Growth
German HR software and payroll-as-a-service provider VEDA has secured €17 million in financing from CIBC Innovation Banking. This financial boost is aimed at extending VEDA’s market share within the DACH region, encompassing Germany, Austria, and Switzerland, and expanding its footprint into other international markets. CIBC Innovation Banking has a track record of investing in promising tech companies, having previously backed Payapps, Ometria, and Phrase.
The fresh funding will enable VEDA, recently acquired by global alternative investment firm Investcorp, to develop and execute a robust buy-and-build strategy. This approach will focus on acquiring payroll software companies and enhancing payroll services. Additionally, VEDA is eyeing expansion into new regions, including the Benelux countries, the UK, and the Nordic nations.
Comprehensive HR Solutions
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Headquartered in Alsdorf, Germany, VEDA, under the leadership of CEO Dr. Ralf Gräßler, offers an all-in-one platform for digital HR management. With a team of 170 employees, VEDA provides a suite of services including payroll, time and security management, recruiting, personnel development, and learning management. This comprehensive approach is designed to digitize HR tasks, thereby minimizing administrative burdens for its clients.
Serving nearly 1,200 customers, VEDA’s client base includes prominent names such as MAN and Lufthansa, as well as numerous mid-market enterprises with employee counts ranging from 150 to 5,000. In 2023, VEDA reported revenues of approximately €20 million.
Dr. Gräßler highlighted the transformative impact of the pandemic on HR departments, noting how VEDA’s technology has become essential in managing remote work and addressing talent shortages. “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,” he said.
Supporting Mittelstand Growth
Sean Duffy, Managing Director at CIBC Innovation Banking, expressed enthusiasm for supporting VEDA’s growth ambitions. “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,” Duffy stated.
With this significant investment, VEDA is well-positioned to enhance its service offerings and expand its international presence, setting the stage for further innovation and growth in the HR technology sector.
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