Top 10 HR tech startups to watch out for in France for 2023

Novel challenges often require novel solutions. This is where startups can offer value: their size often underpins innovation and flexibility when delivering scalable fixes to some of the newest business issues.

Their services could certainly help HR, with the function still struggling to overcome some of the challenges the last couple of years has created, including issues with the effectiveness of long-term hybrid work, understanding what a healthy remote culture looks like, and how to attract talent on a market beset the so-called ‘Great Resignation‘.

At least some of the answers to these big ticket issues are considered to be in the offerings of some of the best HR tech startups in France – that’s at least how it appears venture capital (VC) sees it with VCs funding Gallic startups to the tune of €168 million in 2021, with renowned investment management firms like SoftBank in on the act, too.

This is understandable. Some of these French-headquartered firms are proffering new approaches to many core parts of HR’s remit. They are using algorithms to reshape approaches to hiring, automation to reconceive how payroll works, and going down an app-based route for employee benefits individualization.

With unicorns amongst them, here are ten French startups to watch out for over the coming 12 months.

Swile

Swile is an app-based employee benefits card that started as a way for French employees to unify their company benefits and personal debit cards – the result of French companies having to contribute to staff meals – ensuring that staff didn’t end up out of pocket.

Now used by over 90,000 staff at firms including Spotify, Carrefour, and Airbnb, the Montpellier-headquartered unicorn – they got an additional €171 million of funding from SoftBank in 2021 – links its services to better retention and engagement, delivering targeted insights for employers.

It’s also broken into the sustainable commuting market as well as taking decent market share from bigger benefits providers. For Swile, the future certainly looks bright.

Payfit

Another unicorn – Payfit is valued at just over €1.8 billion – the Parisian firm’s revenue is rocketing, thanks to its growing SME client base. Their product is simple: take on the complexity and compliance aspect of payroll in the software it provides as a service.

Although still largely France-centric, Payfit now has customers in Spain, the UK, and Germany and offers add-ons for this base, including onboarding, timesheets, and performance review capability allowing, as Firmin Zocchetto, its CEO, says “small companies to offer the same perks [employees] would get by working for big companies.”

Iziwork

Temporary work platform Iziwork is personalizing and digitizing what once was done by an old-fashioned employment agency. Future-leaning, candidates use an app to create a profile, upload documents, get personalized job recommendations, and even request a down payment on pay.

Growth-focussed, the Cathay Innovation-backed firm also partners with third parties to increase the supply of candidates for its client businesses, hoping that the 800,000 individuals it has found work for so far allows it to take market share from bigger players in the industry soon.

Lucca

The HRIS (HR information system) startup had a flourishing start to life, bootstrapping its way to €15 million of revenue before getting private equity backing.

Using key strategic partnerships, in order to expand its offering to customers, Lucca offers automation capabilities in four key people areas: time and product management; talent management; expenses and finance; and pay.

With over one million end users in over 100 counties, €21.5 million in revenue last year, and 42% growth in 2021, life at Lucca is certainly on the up.

Xtramile

With many sectors struggling with rising costs in recruitment, Xtramile, led by Founder Stephanie Nenta Mbianda, certainly could pique many businesses’ interest.

Backed with Google Black Founders Fund cash, the startup uses artificial intelligence (AI) and big data to reduce client spend on talent acquisition alongside improving candidate quality.

Using algorithmic techniques already deployed in media and finance, the firm already has partnerships with Adecco and Indeed, hoping to expand its reach in order to help HR circumvent the ongoing talent shortfall.

Welcome to the Jungle

The millennial-founded, 3000+ customer job board-come-ATS-come-intranet provider focuses its attention on improving the experience of work.

Its candidate offering is multimedia heavy whilst its ATS (applicant tracking system) advertising states it will improve the candidate and employee experience alike.

Welcome to the Jungle also practice what they preach, making headlines for being ahead of the curve on the four-day week, whilst also supporting employees in training.

So far, this approach has helped them win over €30 million in funding.

Simundia

At the back end of 2021, the Paris-based digital coaching platform raised a further €9.8 million in funding. With customers already including LVMH, SciencesPo, and Chanel, the startup is aiming to capitalize on increased anxiety around much-needed soft skills by delivering them to client businesses.

With an apparent 91% of users willing to recommend their services, and over nine in ten clients seeing a positive impact on performance, it looks like the immediate future is positive for Simundia.

HR Path

An HRIS provider and digital transformation company, the Parisian business has raised almost €0.5 billion in funding with big plans to acquire other firms as it grows.

Backed by Société Générale and BNP Paribas, François Boulet, co-president at HR Path, has previously said they want to improve HR performance and make the function more innovative.

In fact, it already has plans to double its turnover within five years based on a three-part consulting, software solution, and payroll outsourcing offering.

HeyTeam

The people operations platform startup has lofty aims: improve collaboration, personalize work, and drive better recognition and retention outcomes. All via its SaaS offering.

This ethos stems from Nathaniel Philippe, HeyTeam’s founder, who is a big proponent of making work and HR life less about administration and more about communication.

With 200 customers already won, the Paris-based company secured additional eight-figure funding in early 2022 in order to expand into Italy and Spain, as well as double its headcount.

Elevo

Performance management is an increasingly contested area of people practice; Elevo aims to solve it by bringing together performance, engagement, and development in a single offering, which boats the ability to integrate with the wider HR tech stack, too.

Claiming to have a 95% employee use rate when implemented and to boost engagement for 70% of the workforce, and already winning customers such as JCDecaux and BlaBlaCar, the firm already has seven-figure backing and glowing testimonials in order to help them move forward.

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