Chilean startup Buk reaches US$417 million valuation; Softbank and Greenoaks become shareholders

RIO DE JANEIRO, BRAZIL – Buk, a Chilean startup focused on human resources management, closed a US$50 million Series A funding round, with the incorporation of shareholders such as U.S. Venture Capital fund Greenoaks, investment bank Softbank, and contributions from unicorn companies such as Rappi, Kavak, Konfio, GBM, Ualá and Brex.

With the operation, the company reached a valuation of US$417 million, making it the country’s 3rd most valuable startup after Cornershop and NotCo, according to Guerrero y Olivos law firm. The latter, along with Gunderson and other international advisors, was involved in GreenOaks, Softbank and other investors’ incorporation process.

Guerrero Olivos advised on all Chilean and cross-border corporate and tax aspects of the transaction, coordinating the various teams of foreign attorneys involved in the operation.

The startup founded 4 years ago by Chileans Jaime Arrieta, Santiago Lira, Teresita Morán, Felipe Sateler and Ricardo Sateler, developed a cloud-based software that allows companies to comprehensively manage the HR area, from the payment of salaries to the professional development of their employees. It also provides tools such as climate surveys, performance evaluations and selection and recruitment modules, as well as an attendance control company.

Buk’s CEO Jaime Arrieta says that the startup had always developed organically, financing its growth with revenue from its sales.

“However, the positive results achieved and the differentiated offering, which distinguishes us from the competition for its comprehensiveness, led funds such as Greenoaks and Softbank to approach us and want to invest in Buk to boost its growth,” Arrieta says in a statement.

Investment Leader and Head of Softbank Latin America Fund’s (SBLA) Mexico Office Juan Franck notes that “they are well poised to continue expanding in Latin America and have achieved very impressive growth so far. We are honored to be one of the company’s first institutional investors.”

PROJECTIONS

With the fundraising, Buk will seek to accelerate its growth in Mexico, consolidate the market in Peru and Colombia, double its efforts in technology and product development, with a focus on updating and continuously improving its processes, and acquire new companies at a regional level.

The startup recently acquired CTRL in Chile, a company that developed an assistance software, and plans to continue consolidating the industry in the region through new acquisitions.

In the next 4 to 5 years, Buk aims to grow by at least 10 times its share in all markets where it is present, which entails processing close to 4 million collaborators per month.

According to the press release, last September its business units grew 23% in Peru, 20% in Colombia, 7% in Chile and 48% in CTRL, compared to the preceding month.