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Three months after receiving a US$4.4 million investment in a pre-seed round, BHub – a company that promises to deal with the “boring” side of small and medium-sized businesses (SMBs) – announced a new US$20 million Series A round today.
The round was led by monashees and Valor Capital Group. QED Investors, Picus Capital, and ClocktowerVC also participated. This capital will be used to reach more SMEs in Latin America, expand to Mexico and invest in marketing.
An early product-market fit, steady growth for three months, and high referral rates from clients can explain why BHub has raised a new round so quickly.
Jorge Vargas Neto, CEO of BHub, told TechCrunch that more than one million companies went bankrupt in Brazil in 2020. The usual suspects are to blame: the coronavirus pandemic and poor financial management.
Therefore, BHub wants to create a new category of “back-office-as-a-service”. This would allow entrepreneurs and small business owners to better manage their businesses and ditch managerial activities.
After all, accounting, CFO, legal, and human resources are necessary for a successful SME operation, but may distract SME leaders when it comes to focusing on product development or resource allocation.
Before leading BHub, Vargas Neto, had already driven companies such as Zen Finance and Biva. With this new company, he’s targeting a broad market of SMEs in Latin America with a reasonable product: a monthly $349 subscription that can be easily integrated with a company’s financial system.
Currently, BHub has 51 employees and 134 clients. The new capital will help them add 100 more employees and reach more than 2,000 clients.
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