Italian multinational buys Brazilian startup to lead HR sector

A Zucchetti, an Italian business management software and technology group, announced this Friday, 11, the acquisition of 51% of the Brazilian startup of people management Elofy. The transaction value was 5.6 million reais, and the participation could reach 100% in the next three years.

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Currently, Zucchetti is one of the most important companies in the IT sector in Italy, and in addition to Brazil, it also has branches in Germany, the United States, Spain, France and Switzerland. Around here, the group has about 40,000 customers – companies in segments such as retail, industries, virtual stores and hotels – a relatively small portion of the more than 600,000 companies served worldwide.

Elofy, founded in 2017, works with technology for the development and engagement of employees. The startup’s platform offers services such as management of objectives and goals, performance evaluation, succession, individual development plan, continuous feedbacks, praise wall, among others. In 2020, Elofy tripled its customer base and increased sales by 50% compared to the previous year – the company does not reveal numbers. In the list of 70,000 customers are the companies Sicredi, Dasa and EDP Brasil.

For Zucchetti, the purchase of Elofy is part of the multinational’s investment and expansion strategy in the human resources sector in Brazil. The scenario shows an expanding market with many opportunities, especially with the pandemic. The migration of companies to the online environment opened the doors for startups, like Elofy, to develop solutions that combine technology with continuous monitoring of employees.

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Before Elofy, Zucchetti acquired the American hrtech Beaconforce, a Silicon Valley startup that uses artificial intelligence to ensure the well-being of employees.

“Despite being a startup with only four years in the market, Elofy shows a great and surprising maturity in its capacity to serve large clients. This characteristic is extremely relevant for Zucchetti, since we are currently the leader in HR solutions in Italy and we are expanding in other European countries — a dynamic that will certainly benefit Elofy in the future”, says Alessio Mainardi, CEO of Zucchetti Brazil.

With the purchase, Elofy wants to be recognized as the leading performance and engagement management software in Brazil. “We want to grow at a fast pace and enter the international market from the connections with Zucchetti”, says Daniel Kafruni, CEO and founder of the startup.

Acquisitions on the rise

The purchase of Elofy is, in fact, Zucchetti’s second acquisition in Brazil in the last 12 months. In September 2020, the company bought Compufour from Santa Catarina, a developer of management systems for micro and small businesses, for 100 million reais.

The objective is to integrate companies that can bring new solutions and add services to Zucchetti’s portfolio. In 40 of its existence, 100 acquisitions have already been completed. “We intend to continue with our expansion plan and make Brazil a reference hub for the Zucchetti group”, says the CEO.

In 2020, the Zucchetti group recorded sales of more than 1 billion euros, something around 6.8 billion reais.

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