HERO Software, a leading SaaS platform for tradesmen SMEs in the DACH region, has closed a €40 million Series B financing round. The round was led by Eight Roads Ventures, with existing investor Cusp Capital participating again. Federated Hermes also participated in this round.
With the new funding, HERO plans to invest in its team, new talent, expand into new markets and further develop its SaaS offering to continue its mission of helping small and medium-sized trades businesses succeed.
“Going forward, we are planning to make everything around financial transactions for our customers as easy and smooth as possible. Additionally, we will focus on integrating third party tools & services to our platform to save even more time and thus improve the margins of our customers,” said Dr. Michael Kessler, founder and CEO of HERO Software.
The tradesmen industry represents the backbone of the economy, contributing as much as 12% of the GDP of many European countries. At the same time, tradesmen are also crucial to achieving Europe’s ambitious climate targets. Advancing the digitalization of tradesmen SMEs through modern technology is essential for meeting energy-efficient building refurbishment goals. Consequently, there is a significant demand for ERP systems tailored to the needs of tradespeople, offering industry-specific solutions to help them tackle their daily challenges.
Founded in Hanover in 2020 by Dr. Michael Kessler and Philipp Lyding, HERO Software’s platform enables trade business owners and employees to manage all their core workflows in one place, while field workers can access all necessary information on-site. It acts as an operating system for SMEs across various trades, including plumbing, carpentry, photovoltaic installation, and electrical services. From the first customer contact and the preparation of quotes, to the planning and execution of projects on-site, and to the invoicing and payment, all processes are digitally mapped and available at any time on various end devices.
With more than 20,000 users, HERO has established itself as a leader for cloud-based software for tradesmen in the DACH region. The efficiency gains enabled by HERO’s technology have enabled its customers to significantly increase their project throughput and more sustainable operations.
“At Eight Roads we have witnessed many successful stories in Vertical SaaS, and HERO stands out for its comprehensive product and experienced team. We’re excited to be backing their growth journey,” commented Lucile Cornet, Partner at Eight Roads Ventures. “We strongly believe that vertical SaaS will enable entire industries to become more digital and sustainably successful – which is one of our investment thesis’ at Eight Roads Ventures.”
“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,” added Dr. Maximilian Rowoldt, General Partner at Cusp Capital. “One of the beauties of building an industry-specific operating system is the potential to add functionalities on top of the core software and the resulting levers that enhance your customer’s success. We look forward to continuing to support the entire HERO team in implementing its ambitious strategy.”
