Chinese tech firm Beisen has raised $260 million in what it claims to be the largest financing in the local human resources (HR) software-as-a-service (SaaS) market.
For its Series F round of funding, Beisen roped in new investors including SoftBank Vision Fund 2, Goldman Sachs, Chinese private equity (PE) firm Primavera Capital and US asset management giant Fidelity International.
Existing shareholders, including Matrix Partners China, Sequoia Capital China, Genesis Capital, and Shenzhen Capital Group, which is backed by the local government in southern China’s Shenzhen City, also re-upped in the new round.
China’s HR SaaS market size is projected to grow to nearly 7.1 billion yuan ($1.1 billion) by 2023 at a compound annual growth rate (CAGR) of over 35% between 2019 and 2023, according to iResearch. The Shanghai-based market consultancy said that a trend of offering “more integrated, customised” HR SaaS solutions has grown stronger in the domestic market last year, due to factors including virus-accelerated industry digitalisation and SaaS innovations.
“The future 10 years of HR SaaS offerings will trend towards ‘integration and low-code development,'” said Ji Weiguo, Beisen’s co-founder and CEO, in a statement. “Beisen will continue to focus on this market opportunity, enhancing our product innovations and client service capabilities to empower the digitalisation of China’s HR industry.”
Founded in 2002, Beisen offers iTalentX, a cloud-based HR SaaS and talent management platform that integrates solutions for talent assessment and management, performance evaluation, and job succession, among others.
The firm claims that over 150,000 HR professionals and 20 million corporate employees now use its platform on a daily basis. To date, Beisen has served 6,000-plus large- and medium-sized enterprises in the fields of internet, financial, automobile, real estate, retail and manufacturing, according to its website.
According to a November 2020 report from German market researcher Statista, Beisen was the biggest player in China’s HR SaaS market with a 16% share in 2019.
The HR tech firm has three R&D centres in Shanghai and is headquartered in Beijing and Chengdu. It currently has over 1,500 employees, including more than 600 R&D professionals. It claims to invest at least 25% of annual revenues in R&D.
Beisen plans to use the proceeds from its latest funding round for product innovations, customer service improvement, and talent recruitment.
Prior to the Series F round, Beisen had announced the completion of a Series E round at over $100 million in October 2018. The previous round was led by Matrix Partners China and Genesis Capital, with participation from Sequoia Capital China.