HeavenHR, a cloud-based HR management platform for small and medium enterprises

(SMEs), has closed €6 million in Series A funding. Leading the round in the Berlin-based

startup are Target Global, and Open Ocean.

HeavenHR, which is just 10 months old, says the new financing will be used to continue

building out the product and to accelerate growth. The company is currently active in

Germany, Austria, France and Switzerland,

Operating a rather subtle freemium model, the HR platform’s core functions, such as digital

contracts, electronic personnel files, absence management and time tracking are free

(similar to London’s CharlieHR), but HeavenHR charges for additional services such as

payroll, benefits, pension and insurance management.

The pension aspect is reminiscent of London/Tel Aviv-based Hibob, which recently launched

with $7.5 million in backing in a round led by Silicon Valley VC Bessemer Venture Partners.

There’s a lot of money to made in workplace pension enrolment by effectively operating as

a pension broker, and a new breed of HR management startups are piggybacking pensions

and, similarly, insurance. Come for the cloud-based HR tools, stay for the pensions and

insurance, seems to be the mantra.

“Since we offer a pretty comprehensive product, we have many competitors in various

fields,” says HeavenHR MD Johannes Roggendorf.

“On top of competitors such as paper forms and Excel, we have the old-fashioned payrollonly

providers, traditional HR software companies whose products either lack in

functionality or ease-of-use, and modern HR software companies that often offer limited

features”.

And, on the insurance and pension side, Roggendorf says HeavenHR competes with offline

and online brokers, but is at an advantage because the platform integrates various HR

processes.