Chilean startup Buk raises $35 million, eyes entry into Brazil

Chilean startup Buk has raised $35 million in a round that included the participation of Brazilian fintech Nubank.

Posté le jeudi, mars 30 2023
Chilean startup Buk raises $35 million, eyes entry into Brazil

This is the second round of financing for the Chilean company, after its $50 million Series A in October 2021, in which Greenoaks and SoftBank Latin America also participated.

At that time, Buk was valued at $417 million, which made it the third most-valuable startup in Chile. Other notable Series A investors included unicorn founders Rappi, Kavak, Konfio, GBM, Ualá and Brex.

Regarding the latest round, Buk’s CEO Jaime Arrieta, said that the company still has resources from their Series A round, and that Buk has always aimed at profitability and organic growth.

“As a company, we didn't need as much capital to execute our long-term growth plans. Also, although the funding round was oversubscribed by other investors, we decided to partner with Base10, given the experience they can bring to Buk's current growth phase," the CEO explained.

He added that, “given the current market conditions, we are very pleased to have achieved a valuation significantly higher than that of our last round. This validates our mission to create value for our customers by building happier workplaces and is the result of our continued progress. This financing is also positive news for the entire Latin American startup ecosystem, as it is proof of the permanent interest of investors in companies with solid business fundamentals”.

Arrieta is also enthusiastic about associating with Base10: “It is a venture capital funded by entrepreneurs, which understands the reality of the entrepreneur very well. In addition, Adeyemi Ajao, co-founder and managing partner of Base10 Partners, who will be part of the investor committee, sold his startup to Workday, the leading HR technology company, and later worked with them. So he has extensive knowledge in this industry”, he said.

The Silicon Valley-based fund stands out for its investments in Figma, which was recently acquired by Adobe for $20 billion), Notion, Nowports, Nubank, Rappi, Cabify, Instacart, Circleci and Plaid, among others.

Greenoaks' new involvement also validates what Buk's track record has been since the last round of funding, according to Ajao.

“As investors, the Base10 team has been actively involved in Latin America for almost 12 years, but this is the first time we see an opportunity match a top-class team like Buk so well,” Ajao said.

“Over the past few years we have been following the trends in payroll management as they have emerged, and we believe that Buk's technology leaves the company well positioned to take on the complicated and abundant challenges that HR presents in Latin America," Ajao added.

Base10 was advised on the investment by Chilean law firm Estudio Zapata, with a team featuring Franco Zapata Inostroza, Sebastián Bellolio, Fedora Ramos Yanine, Damaris Suazo Valenzuela and Camila Catalán Felder.