Zucchetti Brasil acquires equity control of startup Elofy and inaugurates HRTech Division in Brazil

With the purchase of 51% of startup Elofy, which counts with clients such as Sicredi, Dasa and EDP Brazil, the Italian group expands its operations in the Brazilian market and increases its global portfolio of HRtechs

Italian group Zucchetti announced Friday, June 11, that it has acquired share control of startup Elofy, a developer of HR systems focused on developing and engaging the human capital of companies such as Sicredi, Dasa and EDP Brasil. The operation is part of the multinational's investment and expansion strategy in HR solutions in Brazil. With products dedicated to different segments, from ERP to POS, from e-commerce to HO.RECA. Zucchetti is present in countries such as Italy, Germany, Austria, Switzerland, United States, Spain, France and, for the last 10 years, in Brazil - where it has 41,000 customers, more than 1,700 partners and 186 employees. The value of the transaction has not been disclosed.

For Zucchetti, the convergence with Elofy opens the door for the group in the country's HR market, representing a decisive step in its expansion strategy. The company already has its suite of people management solutions well known in Europe, serving large companies in different segments. For Alessio Mainardi, CEO of Zucchetti Brasil, seeing a young startup like Elofy serving important clients demonstrates the maturity of the business. "The solution's synergy with our existing operations in Brazil and abroad, along with the tool's adaptability, serving small, medium and large companies simultaneously - a feature hard to find in most software - were the most important factors in our decision," he explains. Zucchetti's latest global acquisition in this people management technology vertical was American Beaconforce, a Silicon Valley startup that uses artificial intelligence to ensure employee well-being.

After the purchase, Elofy plans to accelerate the development of the roadmap and establish itself as the best performance and engagement management software in Brazil. "Now, our goal is to evolve a lot in analytics to provide powerful information to offer our client an increasingly strategic and data-driven HR and people analytics. The goal is to continue to grow at a fast pace and enter the international market," says Daniel Kafruni, CEO and founder of the startup.

Founded in 2017 by Daniel Kafruni, in Porto Alegre (RS), Elofy has partners Lucas Kafruni and Eduardo Kafruni, 24 employees and 70,000 users from medium and large companies. The platform integrates several services in one environment: goals and objectives (OKR) management, performance appraisal, succession, individual development plan, continuous feedback, 1:1 conversations and customizable surveys. In 2020, the startup had 300% growth in customer base and 50% growth in sales over the previous year.

Second acquisition in Brazil in one year

Zucchetti is Italy's leading software house and Europe's largest company in its segment. Worldwide, the company employs 7,000 people, provides software to more than 600,000 companies and has revenues of more than €1 billion, approximately R$6.8 billion. With a strategy of organic growth and M&A, the multinational has strong M&A expertise as a result of more than 100 acquisitions over the past decade.

The latest acquisition in Brazil was Santa Catarina-based Compufour, a developer of POS systems for micro and small businesses. "We are always analyzing and looking for companies that can add value to our industrial growth plan. In addition to organic growth, Zucchetti acquires companies that can complete its portfolio, providing a broad suite for the current software projects that the market requires", explains Mainardi.

In the picture: Daniel Kafruni, Lucas Kafruni and Eduardo Kafruni, partners at Elofy: Brazilian HRTech had half of its operations bought by Italian multinational