HERO Software, a prominent SaaS platform based in Hannover for tradesmen SMEs in the DACH region, has closed a Series B funding round of €40 million.
Eight Roads Ventures led the round, with return participation from Cusp Capital, an earlier investment. Federated Hermes took part in this round as well.
With the additional funds, HERO intends to enhance its SaaS solution further, enter new markets, invest in its staff and fresh talent, and carry out its purpose of assisting small and medium-sized trade firms in achieving success.
Dr. Michael Kessler, founder and CEO of HERO Software added:
“We intend to make financial transactions as simple and seamless as we can for our clients in the future. We will also integrate third-party tools & services to our platform to save even more time and improve our customers’ margins.”
The tradesmen’s sector, which accounts for up to 12% of the GDP in several European nations, is the backbone of the economy. Tradespeople, however, are also essential to meeting Europe’s lofty climate goals. To accomplish the aims of energy-efficient building refurbishment, craftsmen SMEs must accelerate their digitalization through new technology. As a result, there’s a big need for ERP systems designed specifically for tradespeople, providing industry-specific solutions to help them overcome everyday obstacles.
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The company’s platform lets trade firm owners and staff handle all of their essential procedures in one location, while field workers can access all relevant data while they’re on the job. It serves as an operating system for small and medium-sized enterprises (SMEs) in a variety of industries, such as electrical, carpentry, plumbing, and solar installation. Every process step, from preparing estimates and contacting customers to organizing and carrying out projects on-site to billing and making payments, is digitally mapped and accessible at any time on multiple end devices.
HERO has become a market leader in the DACH region for cloud-based software for tradespeople, with over 20,000 users. Customers of HERO have been able to achieve more sustainable operations and a significant improvement in project throughput thanks to the efficiency benefits made possible by the company’s technology.
Eight Roads Ventures Partner Lucile Cornet stated:
“At Eight Roads, we have seen a lot of noteworthy Vertical SaaS success stories. Among them, HERO stands out for having a well-rounded product and a knowledgeable workforce. We’re thrilled to be supporting their growth journey. One of Eight Roads Ventures’ investment tenets is that ‘we firmly believe that vertical SaaS will enable entire industries to become more digital and sustainably successful.'”
Dr. Maximilian Rowoldt, General Partner at Cusp Capital, continued:
“Michael and Philipp are building a best-in-class product, an incredible team, and achieving strong commercial traction – it has been a pleasure to witness their growth since leading their Series A. Adding features to the core program and creating levers that increase your customers’ success is one of the best things about developing an industry-specific operating system. We are eager to help the entire HERO team carry out its audacious plan in the future.”
