In March 2020, Sami Bouremoum and Michael Ginzo, two tech entrepreneurs with backgrounds in consulting (Bouremoum works for Bain & Company) and software development (Ginzo led product when hiring startup Deel), got together debut Hofy, a company that provides office equipment to remote tenants. It wasn’t long before Hofy began to earn “six-figure lows” in revenue, Bouremoum claimed, as the pandemic forced employees around the world to switch to a work-from-home setup.
More than two years later, investors still believe in Obviously Hofy’s mission. The company today closed a $15 million Series B round led by CNP with participation from Stride, 20VC, Day One Ventures, Kindred Capital, Activum, and TrueSight, bringing the total raised by Hofy to 30.2 million dollars. Bouremoum told TechCrunch that the new money will be used to expand Hofy’s services to more countries while growing its suite of IT services.
“We wouldn’t exist without the pandemic, and overall, it has accelerated remote work by 20 years, which creates a huge market opportunity for this solution. Right now, our growth comes from our existing clients hiring more staff,” Bouremoum told TechCrunch in an email interview. “Initially, Hofy was going to raise a larger round in early 2022, but since then we’ve built a cash-flow-positive business that doesn’t require large amounts of VC dollars to scale. This way we do not dilute existing investors and employees.”
Hofy, which initially only served customers in the UK but is now available in 110 countries, handles equipment orders and shipments for corporate customers. Once integrated with the HR system, Hofy can be used to establish rules such as budgets and usage policies. New employees invited to the platform can order their devices – whether laptops, monitors or accessories – before the start date.
For customers, Hofy provides support, including equipment loan in case the device needs repair. The platform also handles referrals, allowing administrators to remotely wipe the device pre-collection process.
“On average, companies spend 3.5 hours equipping a new employee,” says Bouremoum. “Hofy equipment is leased, turning an upfront capital expense into a manageable operating expense that closely aligns with the dynamic nature of the rental and the startup’s revenue. Customers want to ensure that every team member has access to a compliant, efficient teleworking setup, no matter where they are in the world… Hofy [can] integrate natively into a stack of tools and help employers hire and manage the lifecycle of their employees globally. “
In addition, Hofy provides an API that allows staffing providers to provide hardware delivery and recovery as a managed service. One of the startup’s first integration partners, Deel, Ginzo’s former employer, will allow customers to use Hofy through the Deel platform to purchase and ship devices.
“Imagine being able to not only manage a Workday newcomer’s digital engagement journey, but get their device physically without leaving Workday,” continued Bouremoum. “This is the kind of application our API allows.”
Hofy competes with Fleet, recently raised $20 million for a service that helps track and manage enterprise devices like laptops. Everywhere is another competitor – it’s a consulting firm that works with companies to perform remote work setups, including device lifecycle management.
Perhaps the bigger, more existent threat to Hofy is the changing attitudes around remote work. While employees claim that working from home makes them more productive – and save they are money – many managers are skeptical, this is a clear threat to remote device management startups like Hofy. In one Microsoft’s recent research85% of bosses say that collaborative work makes it harder to be confident that employees are productive. Those same bosses are strongly encouraging employees to return to the office. Based on The Kastle . systema security company, office occupancy hit a peak earlier this month, with the country’s top 10 metro areas seeing an average of 47.5% workers come to the office compared to the average. before the pandemic.
If Bouremoum had concerns, he didn’t express them.
“We made the decision early in 2022 to move to a cash flow positive operating model, which we were able to do faster than we originally planned,” he said. and declined to disclose revenue figures. “We have a strong product in a large and growing market, so we are not concerned about overcoming obstacles, especially with the recent funding round.”
London-based Hofy plans to grow its team from 95 employees to 120 by the end of the year.