New Investment Opportunity: Lano
Global payroll consolidation and automation
- Full-stack, cross-border payroll consolidation platform combining compliance, data and payment functions
- Services more than 2K companies in 170+ countries, supports payments in 50+ currencies
- 170% NDR; projecting 257% ARR growth, ~200% YOY revenue growth in 2023
- Partnership with Rapyd expanding to offer virtual accounts, reduced fees; plans for credit card, additional services
- €10M Series A round co-led by OurCrowd with participation from existing investors Atlantic Lab, Spark Capital
BOOK A CALL
with your Investor Relations representative
Dear Josb,
The era of global business teams is here, exacerbated by the coronavirus pandemic. But many mid-sized companies must go through the costly process of dealing with bureaucracy of local authorities to comply with regulations and pay new hires.
OurCrowd is investing in Lano, a Germany-based startup which provides a full-stack payroll management platform that consolidates compliance and payments for cross-border employment. The details in this email are based on information received from, and verified solely by, the company.
The Problem
Big companies already know that one of the paths to global success is hiring people from all around the world, especially in countries where they do business or where manpower is less expensive. But tapping cross-border talent is an expensive proposition, often requiring firms to create local entities to handle compliance and payroll functions. The resulting costs and bureaucratic headache mean that small to midsize companies have kept international hiring to a minimum.
The Solution
Lano has created a full-stack payroll management platform that partners with local service providers with whom they share revenue. This allows employers to cut through the red tape to hire contractors and freelancers without having to open a legal entity in another country, with all the bureaucratic and tax implications involved. Lano's user-friendly platform seamlessly integrates existing payroll platforms, allowing managers to view all international teams simultaneously and remotely handle their HR, payroll and compliance needs.
The Traction
Lano is targeting small to midsize businesses ranging from 100 to 1,000 employees. Thanks to its robust partner network, Lano is currently working with over 2K firms operating in more than 160 countries including Scout24, Scaleway, PrestaShop, Gorillas and other marquee clients. Its platform supports payments in over 50 currencies.
The company projects 257% YOY ARR growth by the end of 2023 and ~200% YOY revenue increase in the same period.
From EOY 2021 through August 2022, Lano has a 170% NDR and an average dollar churn rate of 1% from January 2021 through August 2022.
Lano is also leveraging a key partnership with Rapyd to provide payment capabilities while enabling remote workers to open a virtual account and get paid faster, without the hassle of complex transactions or expensive FX conversions. The two companies plan on offering a white-label credit card and other services in the near future.
The Round
OurCrowd is investing up to $2M to co-lead this €10M Series A round with participation from existing investors Atlantic Lab and Spark Capital. Tomahawk is a previous investor in the company.
Meet the CEO
We're hosting a webinar/conference call on Tuesday, January 17th, at 7PM Israel / 12 Noon New York / 9AM San Francisco for investors to meet CEO Aurel Albrecht and learn more about Lano.
Can't make the webinar? Register and we will send you a recording of the call.
The Lano Solution
Lano's full-stack payroll management platform allows employers to hire new employees around the world easily by connecting them with local partners. The system, which easily integrates into existing payroll structures, provides all the tools needed to hire, manage and pay a remote workforce. Contractors and freelancers alike are hired and paid in full compliance with local regulations. Payments are provided in local currencies using low exchange rates and can be implemented automatically in real time.
Lano works with over 2,000 companies in more than 170 countries around the world and supports payments in over 50 currencies.
Next steps:
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