FLOWIT, a Swiss startup working on changing traditional approaches to personnel development with its AI-based “digital coach,” announced the successful completion of its first and oversubscribed €4.2 million seed funding round.
The round was co-led by Vi Partners and Alstin Capital, funds of Carsten Maschmeyer. Additionally, Daniel Gutenberg is joining the investor consortium, bringing his extensive experience in the start-up environment. All three investors will support FLOWIT not only financially but also strategically to further scale the company and expand internationally.
FLOWIT offers a solution that provides all employees—especially those on the front lines, such as service technicians, healthcare workers, hospitality staff, and other non-desk employees —with access to real-time feedback and development. These groups have often been overlooked in traditional employee development. FLOWIT addresses this gap by supporting both companies and employees in their daily work with feedback and learning processes, thereby enhancing employee engagement.
Gaetano Zanon, from Vi Partners, said: “We are excited to co-lead FLOWIT’s first institutional funding round. FLOWIT’s generative AI-powered platform offers innovative solutions for the 80% of the global workforce without desks. The founding team, led by Bilâl and Yasemin Tahris, combines passion with extensive industry experience and has already achieved significant success with large companies in Switzerland and Europe.”
Reduces turnover costs by up to 50%
Since its market launch in September 2021, FLOWIT has already acquired over 70 customers in the DACH region, including hospitals, hospitality businesses, and real estate companies. More than 30,000 employees are currently using the SaaS solution. The platform reduces turnover costs by up to 50% and strengthens the emotional and normative commitment of employees to their companies. FLOWIT eases the burden on HR and leadership teams through automated processes, real-time data, and AI-driven dashboards, allowing more time for active leadership and fostering a healthy corporate culture. The solution offers comprehensive features, including innovative employee satisfaction surveys and customizable focus areas for employee development.
Alexander Meyer-Scharenberg, from Alstin Capital, commented: “Germany is one of the countries in the world with the greatest labor shortage. Filling vacancies and retaining good employees is a huge challenge for HR departments, as every employee turnover costs the company a lot of money. This is exactly where FLOWIT comes in, providing the often forgotten non-desktop employees with an AI-based digital coach that reduces employee turnover by up to 50%.”
Award-winning HR tech
Daniel Gutenberg added: “Having already invested in 15 unicorns, I can recognize the potential that a groundbreaking idea can unleash when the right combination of innovation, market demand, and a strong team is present. FLOWIT uniquely combines these elements, offering a comprehensive platform that redefines the entire employee development cycle. For me, FLOWIT is undoubtedly ‘the next big thing’ in the field of People Development and HR-Tech.”
FLOWIT won the Swiss HR Awards in 2022 and the Swiss Economic Award in June 2024 highlighting the platform’s innovation and social impact. The team is expected to grow from the current 20 to 50 employees by the end of 2025 to meet increasing demand and drive international expansion.
Read the orginal article: https://www.eu-startups.com/2024/08/zurich-based-hr-tech-flowit-raises-e4-2-million-for-frontline-employees-ai-coach/
