Brazilian software firm Totvs acquires HRtech Feedz for $13M

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It seems that some people from Totvs’ M&A strategy team have been reading our series focused on startups beyond the urban centers of Rio and São Paulo. A month after the marketing automation platform RD Station acquired Tallos, which we talked about on October 2021, the Brazilian software company acquired Feedz, a company from the southern state of Santa Catarina that in December of last year said it wanted to become a one-stop-shop for HR management.

Totvs will pay BRL 66 million (around $13,2 million) to acquire 60% of the company. The remaining 40% can be purchased in the first half of 2025 at a price that will consider Feedz’s goals achievement.

Founded in 2018, Feedz has over 1,000 customers and around 140 employees. Its main tools are Performance Management, with personalized reports and OKRs (Objectives and Key Results), which allow transparent management of a company’s goals. In addition, Feedz also offers Engagement Management, with tools such as the Organizational Climate Survey by Pulses, Feedback, 1on1, PDIs, Emotional Thermometer, and eNPS, all of which are gamified.

With a three-digit growth in net revenue over the last two years, Feedz had annual gross revenue of BRL 22 million ($4,4 million). In a conversation with our editor Fabiana Rolfini at the end of last year, Bruno Soares, president and co-founder of the company, said that the goal was to reach a revenue of BRL 9 million ($1,8 million) in 2022, doubling last year’s results.

At the time, he said the company, which was created and grew with its own money and had only raised around $40,000 from venture builder Organica, was not looking for external funds. “Feedz is proof that what we do for our customers works. We eat our own food and are proud not to depend on a venture capital fund for our growth,” he said.

“Due to its strategic positioning in people management, human experience management (HXM) solutions are a growing demand from companies, with growth rates higher than the global ERP market. By acquiring Feedz Totvs expands its solutions focused on HXM, strengthening its portfolio in the Human Resources area, and positioning itself as one of the main technology companies to offer a platform that meets the customers’ needs in a digital and unified way in the entire employee journey,” said Totvs in statement.

“The market recognizes Totvs as a reference in technology for HR. We are happy to be part of this ecosystem, complementing offers and having access to a unique distribution channel, as well as more than 70 thousand potential customers. We are excited about this opportunity,” says Feedz’s co-founder, Bruno Soares.

(translation by Gabriela Del Carmen)