Great Hill Partners is betting on the digitization of HR learning with eloomi, whose winning playbook it intends to replicate in the US, Chris Busby, partner at the firm, told PE Hub.
The firm on Monday announced its $55 million investment in eloomi, a global, cloud-based, people-development software company.
The company, which offers a leading SaaS corporate learning and performance management platform, has experienced positive tailwinds as a result of the remote environment and a transition to online-based models, Great Hill’s Busby told PE Hub.
“Obviously, overnight the idea of in-person training became obsolete and yet employers still needed to deliver solutions to their employees around their learning needs, whether that was areas like compliance or just skilled training and development,” the investor said. “Given that transition, there is a need for learning management tools to affect that change.”
eloomi, based in Copenhagen, Denmark, enables HR directors to easily distribute training content to internal and external users, while monitoring their progress and streamlining coaching, reviews and 360 feedback.
The company is growing north of 50 percent a year and, according to Busby, has developed a differentiated solution in the market that has superior user interface and user experience based on the customer feedback and onboarding.
Besides the HR industry’s movement to digitize, an overall cultural shift – a younger workforce demanding new technological standards – is also proving advantageous at eloomi.
“Millennials are taking up a larger portion of the workforce and their expectations in how they learn and the capabilities of the technology solutions they are using have changed,” Busby said.
“They are looking for things like social learning, and gamification, and micro learning solutions – we saw that changing and being driven by some of those demographic shifts.”
Hiring managers are more often now looking to upscale their existing workforce and offer training solutions to help propel their workers’ career trajectories within the organization, as opposed to having to constantly replace existing employees with new hires, the investor added.
The investment in eloomi came out of Great Hill Fund VII. Its capital injection is primarily intended to facilitate the growth of the company, while some secondary capital will be distributed to certain early investors, Busby told PE Hub.
With the new capital from Great Hill, eloomi will continue investing in its go-to-market and product strategy as well as further penetrate the US, Busby said.
“Given our experience in the US market, particularly in HR software, we believe there is a meaningful opportunity for them to scale their company in the US,” Busby said. “This is an opportunity for them to put more fuel into their engine given the great performance they generated on their existing investment.”
In 2015, Great Hill invested in SaaS employee benefits and recognition provider Reward Gateway, which it helped scale and successfully sell in May 2021, producing a nice return, Busby said.