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BHub gets $ 20million to become back office administrator for Latin American companies – TechCrunch

BHub said on Tuesday it had taken another round of funding just three months after receiving $ 4.4 million of pre-seed investment to offer a full SaaS back office to small and medium-sized businesses in Latin America.

Monashees and Valor Capital Group Double their Investment in the Company by Leading a $ 20 Million Funding Round in Series A Funds including QED Investors, Picus Capital and Clocktower Technology Ventures.

BHub gets $ 20million to become back office administrator for Latin American companies – TechCrunch

BHub’s mobile dashboard. Image credits: BHub

Founded in June, the Brazil-based company provides what it calls a ‘back office as a service’ which includes accounting, CFO services, legal and HR services so that entrepreneurs can focus on their core business, Jorge Vargas Neto, founder and CEO of BHub, told TechCrunch.

BHub is Neto’s third company and its third in the financial sector. He was previously CEO of Zen Finance, which was sold to Rappi in 2020, and Biva, which was sold to PagSeguro in 2017, he said. When it joined Rappi, Zen Finance was told by its accounting firm that it had to pay capital gains tax, which ended up forcing the company to redo all its accounts in 10 days.

“It was hellish, but I’m grateful for this experience because I became passionate about how I could help people avoid the same obstacles in Brazil and Latin America,” Neto added. “We tested the market by inviting entrepreneurs to talk about the obstacles they face in business administration. Some 500 people responded, and we ended up doing 300 interviews which allowed us to see the weak points and to propose our vision of a solution.

For a monthly subscription starting at $ 349, business owners can integrate BHub with their financial systems and view everything through a financial dashboard that includes a chat feature to request reports, resolve queries, and other activity.

Neto explained that in Brazil, hundreds of thousands of businesses closed in 2020, partly because of the global pandemic and partly because of a lack of financial literacy. Brazilian law requires every business owner to have a third party accountant. The market is reserved for them and they are protected by law, “so they don’t have to be that good,” he added. Where the typical accounting firm doesn’t use a lot of technology, this is BHub’s “magic place” to deliver a service based on a technology approach and with startups in mind, he said.

Series A arrived quickly for the company due to a combination of factors: early fit with the product market, steady growth over a three month period, and high referral rates by customers.

The company has 134 companies as clients and seeks to hire 100 people in the fields of engineering, technical, accounting, legal, human resources, marketing and customer service.

“Given the growth that we have seen and what we plan to do, we need to strengthen the team of 51 people and reach 2,000 to 2,500 customers by next year,” added Neto. “We think if we keep up the pace we’ll get there. “

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