Berlin-based software company Kombo secures acquisition of client Midlane
Kombo, a Berlin-based HR-tech startup, has announced the acquisition of Midlane, a company specialising in serving small and medium-sized enterprises (SMEs) with a focus on employees without desk jobs, such as those in logistics or production.
Founded in 2023 by Robin Betz and Mathias Klenk in Berlin, Midlane has been a valuable player in the HR-tech industry. The founders, along with a portion of the Midlane team, will join Kombo, expanding the team in Berlin and New York, where Kombo already has a presence.
Mathias Klenk will take on a leading role in engineering for Kombo, while Robin Betz will serve as Go-to-Market Advisor, focusing on strategic entry into large enterprises with over 1,000 employees. This acquisition is intended to help Kombo offer a better product by focusing on mid-market employees in manufacturing, production, and logistics.
Kombo, founded by Alexander Kübel, Aike Hillbrands, and Fabian Rothfuß in 2022, is known for its AI-powered sales enablement software designed to improve lead generation and engagement for sales teams. The company's SaaS platform supports sales professionals in targeting and closing deals more efficiently. The U.S. is Kombo's most important growth market, generating the majority of its revenue.
The acquisition of Midlane is part of Kombo's goal to become the de facto industry standard and infrastructure provider in HR-Tech within the next 12 to 24 months. Kombo also aims to expand in the U.S. and develop its own AI agent to streamline the job application process.
The AI agent will automatically fill out job applications in a data protection-compliant manner and with the consent of the applicants. This move is expected to provide a more efficient and seamless job application process for both employers and job seekers.
While the HR-Tech market is growing, funding amounts are not, leading to consolidation pressure in the industry. This acquisition is a strategic move by Kombo to strengthen its position in the market. For employees whose roles overlap, Kombo and Midlane have found attractive alternatives to ensure a smooth transition.
Notable investors in Midlane include VC Cherry Ventures, the Viessmann family, and Bolt founders Markus Villig and Niklas Plath. The acquisition of Midlane by Kombo is expected to bring significant benefits to both companies and their customers.
A report from Embrace indicates that investment in HR startups decreased by 23% last year. Despite this, the HR-Tech industry continues to evolve, with companies like Kombo and Midlane leading the way in providing innovative solutions to meet the changing needs of businesses and employees.
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