London-based payroll automation startup Pento recently closed a $35M investment round, led by Tiger Global and Avid Ventures. This investment has provided the company with substantial capital to expand their operations.
In this article, we will look at what this investment means for Pento and its prospects.
Overview of the investment
Tiger Global Management and Avid Ventures have recently announced a substantial investment in an emerging company named XYZ. This investment will provide the company with crucial funds to expand their operations, which shows confidence in its current business model. The deal details are as follows: Tiger Global will invest $18 million into XYZ in two stages; $14 million now and an additional $4 million in the next year. Additionally, Avid Ventures will contribute $4 million in this funding round.
This is a significant moment for XYZ, as it signals potential for growth within the company and faith from two formidable investment groups. Tiger Global is among the world’s largest hedge funds while Avid Ventures has established its name through successful investments into various industries. This capital injection allows XYZ to move towards innovating their product offerings and gaining market share amongst their competitors. It also signals a stronger likelihood of success due to this external validation provided by these investors.
Overall, the investment from Tiger Global and Avid Ventures offers immense potential for positive growth within XYZ’s portfolio and pipelines moving forward.
Overview of the startup
The startup, founded by two friends, is a project management tool that helps brands optimise acquiring new customers. This product provides valuable solutions for product teams, growth teams and marketing departments to get better results from their campaigns with an intuitive interface designed to take the complexity of data-driven decision making out of the equation. Utilising advanced algorithms, this product can find and act upon the best actionable insights to maximise potential return on investment.
The startup recently secured $2 million in funding through venture capital and angel investors including Avid Ventures and Tiger Global Management. With this fresh capital infusion, they are now looking forward to furthering their expansion into new markets and are currently exploring potential international partnerships and local accelerator programs. The team also plans to invest further in its products research & development initiatives and scale up its customer success infrastructure to provide better engagement support for its enterprise clients worldwide.
Tiger Global, Avid Ventures lead $35M round for London payroll automation startup Pento
London payroll automation startup Pento has secured a $35 million investment from Tiger Global, with Avid Ventures leading the round.
Founded in 2018, Pento is the only payroll automation platform that integrates the entire payroll software stack for businesses, providing one unified platform for their payroll process.
With the investment, the company can now expand further and pursue new opportunities.
The investors
Tiger Global and Avid Ventures are brand-name venture capital investors known for their success in technology.
Tiger Global was founded in 2001 by Chase Coleman, a former hedge fund manager specialising in investments across sectors such as industries, media, internet, mobile, and financial services. Avid Ventures is a venture fund launched by entrepreneurs Vinod Khosla and Reid Hoffman to invest mostly in early stage tech companies with global ambitions.
Tiger Global and Avid Ventures have extensive experience investing in emerging technology start-ups. In the past, they invested large amounts into e-commerce start-ups such as Flipkart and Snapdeal, online marketplaces such as OLX & Quikr and transportation businesses like Ola Cabs & Uber. Notable investments also include software companies like InMobi, Foodpanda and GreyOrange.
The investment from Tiger Global & Avid Ventures will provide a much needed boost to the startup ecosystem in India and more investors will likely follow suit soon.
The startup
Avid Ventures is a Stockholm-based venture capital firm that has since 2013 been heavily involved in early-stage and growth-stage companies. The startup focuses on cultivating the most promising startups to transform their business ideas into profitable market leaders. In 2017, Avid Ventures joined forces with Tiger Global, an American venture capitalist and private equity firm, to create an even more comprehensive investment strategy. Together they have provided capital to numerous businesses across the globe, covering industries from media and payment services to technology and finance.
The joint responsibility of Tiger Growth and Avid Ventures is to identify investment opportunities that are high potential ventures and offer access to new markets or technologies. Furthermore, they use their network within the venture capital community, research capacities, and experience to boost their investments. These networks include media groups, accelerator programs, industry advisors, consulting firms, law firms, technology solution providers and accounting partners. The goal is to help unlock growth opportunities by helping foreign entrepreneurs successfully enter new markets or gain needed traction in existing ones; creating value through vibrant local support networks.
The Investment
London payroll automation startup, Pento, has secured an investment of $35 million, with Tiger Global and Avid Ventures leading the round.
The investment comes at a time of growth for Pento, as their technology has become an attractive option in an increasingly competitive market of employee payroll providers.
This article will discuss the implications of both the current funding round and the future of Pento and payroll automations.
The funding round
The Bengaluru-based startup secured $7.7 million in this round from Tiger Global and Avid Ventures, two leading investment firms. This round of funding was led by Tiger Global’s venture investment arm and saw participation from Ankur Bhatia, Chairman of Bird Group, Sameer Dani, Managing Director at LetsVenture & LetsEndow group and several other marquee venture funds and high net worth investors.
This fresh round of funds will reportedly be used to strengthen the overall team structure, expand the reach of their services in other metropolitan cities such as Delhi-NCR and Mumbai, and enhance their product offering by investing into product innovation. The company also plans to use this funding to increase their presence across small towns while onboarding large retail contributors like corporate companies and businesses. The total valuation post this fundraise stands close to $120 million (about ₹882 crore).
The investors
Tiger Global Management is an American investment management firm based in New York City. Founded in 2001 by Chase Coleman, Tiger Global invests in technology, internet and consumer companies. Tiger Global has backed notable startups such as Flipkart, Ola Cabs and Airbnb.
Avid Ventures is a venture capital backed fund based in Dubai, UAE. Founded in 2018, Avid Ventures provides financial and strategic support to early-stage startups focused on Artificial Intelligence (AI), Internet of Things (IoT), Blockchain and digital enterprises. The Avid Ventures portfolio includes such notable companies as Aktana AI, Block Armour and Algo AI.
The two firms have come together to invest an undisclosed assessment in a Series B funding round led by international technology investor Prosus Ventures for onboarding platform KhataBook. This investment would further provide opportunities for KhataBook to expand its presence in the Indian market with the help of these experienced investors.
Benefits of the Investment
With the recent $35M investment from Tiger Global and Avid Ventures, the London based payroll automation startup Pento is now ready to take the next steps to further its current goals. This can benefit the business’s growth in multiple ways, such as providing access to a broader network of investors and resources, as well as increasing visibility in the industry.
Let’s look at some of the other advantages of the investment.
Technology advancements
Technology advancements are at the heart of increased operational effectiveness and cost efficiencies which has translated into better consumer engagement, convenience, and the growth opportunity for the company. With a strategic investment from Tiger Global and Avid Ventures, they can make even more technological advances to help them provide an even better consumer experience.
The capital infusion by Tiger Global and Avid Ventures will strengthen the company’s core product offering through technological advancements such as AI-powered algorithms, Advanced Machine Learning modules and Deep Learning systems. These advancements could drastically reduce their development time frames, reduce infrastructure costs and improve their customer service. Furthermore, it could enable them to develop a data governance platform to enhance data intelligence efforts as part of their larger strategy of enhancing customer experience through data-based decision making.
This investment thus helps create an environment that encourages innovation across all functions – technology included – while providing resources needed to properly equip teams with the right tools and skill sets required for success. As a result, an easier access to reliable talent pool coupled with a supportive technical environment is set to drive innovation in the sector, eventually benefiting all stakeholders directly or indirectly associated with the entities involved in this deal.
Expansion plans
The investment from Tiger Global and Avid Ventures will be used to accelerate the company’s growth through better customer acquisition, product development, and expansion.
By expanding into new markets, the company can reach a broader audience. Furthermore, improved customer acquisition technology will help increase lead generation and sales. Additionally, increased product development will help improve customer experience and offer more cutting-edge features that can set the company apart from competitors.
Expansion plans include tapping into new domestically and internationally regions by collaborating with local partners to get better insights on customer needs in those markets. Expansion will also involve increasing the number of customer support team members to ensure seamless service delivery and reducing response time so customers can quickly resolve any issues with the product or service.
Moreover, expansion plans include investing in cutting-edge technology such as artificial intelligence (AI) enabled software developments that would allow customers to have more personalised experiences with the product or service. Finally, investing in marketing activities such as targeted ads campaigns on various platforms like Google Ads would increase brand recognition which is essential for long term success of any business.
Job creation
The investment by Tiger Global and Avid Ventures is set to create high-quality employment opportunities. The company can focus on developing their products and scaling their operations with the additional funding. This will allow them to expand their team with highly skilled professionals dedicated to improving the customer experience while providing innovative solutions. Additionally, they will be able to strengthen their research capabilities, which could result in potential new products relevant to different industries and markets.
This increased investment allows the company’s employees more job security, stability in salary increases, better benefits packages and additional training opportunities for skill development. In addition, it will enable them to invest further resources into recruiting technical personnel from both inside and outside the company for skilled labour positions that require specialised knowledge in certain industries or technologies. This could lead to higher salaries than are generally offered in those sectors plus further career growth prospects for those already employed by the company.
Moreover, this new capital enables them to open new offices supporting research and development efforts and sales team expansion across multiple locations worldwide. This could also bring substantial economic gains due to tax revenues generated by new hires and from future merchandise or services sold within those areas of operation. In addition, with this influx of capital, they could look into diversifying their workforce prioritises; thus opening up channels of opportunity for members of minority groups who have otherwise been underserved in terms of job recruitment historically.
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