Buk Raises US$35 Million, Looks to Strengthen Regional Presence

Buk, a Chilean human resources startup, announced it has raised US$35 million in a venture capital funding round. The funds will be used to expand the company's presence in Brazil, accelerate its growth in Mexico and consolidate its position in Chile, Peru and Colombia. Since entering the Mexican market in May 2022, Buk has successfully disrupted a crowded market with its “comprehensive,” stand-alone HR solution.

“Given the current market conditions, we are very pleased to have achieved a significantly higher valuation than our last round. This validates our mission to generate value for our clients through building happier workplaces and is the result of our continued progress,” said Jaime Arrieta, CEO, Buk.

During a challenging time for startups, Jaime Arrieta, CEO, Buk, celebrated the success of the company's latest funding round, noting a "significantly higher" valuation compared to its Series A round, which had a valuation of US$417 million. Although the company did not disclose its current valuation, Arrieta stated that the company still has funds from the previous round and remains focused on profitability and organic growth.

Buk's HR platform differentiates itself as a comprehensive solution for managing all of a company's employees' needs in one place, from salary management to professional development. It is the “only platform that has been able to offer this comprehensive [HR] solution on a regional level,” says the company. Investors believe Buk's technology is well-positioned to address the complex and abundant HR challenges in Latin America thanks to its ability to follow emerging payroll management trends.

"This financing is also positive news for the entire Latin American startup ecosystem, as it is proof of the permanent interest of investors in companies with solid business fundamentals," says Adeyemi Ajao, Managing Partner, Base10. He noted that Buk has a “‘best-in-class,” “one-of-a-kind” team and that partnering with them was an easy decision. 

According to company figures, in 2022, Buk grew 2.5 times in sales and now has 4,000 clients in the region.