The firm, whose founder Ian Osborne is one of the architects of the US SPAC boom, now has two Southeast Asia investments under its belt. It recently led a $50 million Series B funding round for BukuKas, a startup that focuses on digitising small businesses in Indonesia.
According to regulatory filings accessed by DealStreetAsia – DATA VANTAGE, Hedosophia invested $14 million in Osome in May through subsidiary HS Investments FT Limited. It acquired 635,367 preference shares at $22.03 each.
Osome, which digitises accounting and compliance services for small and medium businesses, had not disclosed Hedosophia as an investor while announcing the Series A round. This is in keeping with the firm and its founder Osborne’s reputation for preferring to fly under the radar.
Following the Series A financing, Hedosophia has become the second-largest shareholder in Osome. Co-founder Victor Lysenko holds the largest stake in the startup, according to DATA VANTAGE.
Current shareholders of Osome
Founded in 2017 by Lysenko and Konstantin Lange, Osome leverages artificial intelligence software to automate administrative, accounting, payroll and tax-related work for businesses. The startup has five offices, including in Singapore, the UK and Hong Kong, and employs over 200 people.
Other investors in its Series A funding round included European investment manager Target Global, Tel Aviv-based AltaIR Capital, US-based Phystech Ventures, US and Europe-focused early-stage fund S16VC, and Peng T Ong, co-founder and managing partner of VC firm Monk’s Hill Ventures, as an angel investor.
The Singapore-based startup earlier said the COVID-19 pandemic has accelerated demand for business automation, resulting in year-on-year revenue growth of over 100%. It claims to have over 6,000 customers in Singapore, Hong Kong, and the UK.
Osome said its annual recurring revenue – a metric used by software-as-a-service companies calculated by multiplying the monthly recurring revenue by 12, although not all of it may be recognised as revenue in the same year – stood at $9.5 million.
The startup competes with Singapore-based firms such as Sleek, Lanturn, and BlueMeg that focus on reducing the burden of administrative work for SMEs.