Sumeru Equity Partners leads USD100m investment round in SocialChorus
Sumeru Equity Partners has led a USD100 million investment in SocialChorus, a workforce communications SaaS company, along with existing investors.
Existing investors Kohlberg Ventures and Arrowroot Capital will continue as backers in the company, alongside the founders and management. GCA Advisors acted as financial advisor to SocialChorus, while Union Square Advisors served as financial advisor to SEP.
The fresh capital will be used to expand its product innovation, customer success and go-to-market strategies. As part of the deal, majority shareholder SEP will add principals John Brennan, George Kadifa and Mark Haller to SocialChorus’ board of directors.
“SEP has long followed the development of the workforce communications market, in which SocialChorus has been a leader and pioneer,” said Brennan, Kadifa and Haller.
SocialChorus aims to improve employee engagement among IT, HR and communications teams by creating and publishing communications, automatically sending that content to any employee channel including mobile apps, intranets and email, and measure the impact across channels.
“Due to rapid shifts in the workplace, which have only accelerated with Covid-19, we believe SocialChorus’ next-generation software will be an invaluable resource for its customers. We are highly enthusiastic about partnering with Gary and the SocialChorus team to lead a new chapter of continued growth,” the new principals added.
According to a McKinsey survey, 70 per cent of business transformation initiatives do not reach their goals; so it is estimated that over USD 900 billion of what businesses will spend on digital transformation this year could go to waste. The main reason for these failures is believed to be a lack of digital capabilities needed to support them.
“Digital transformation is reliant on human transformation, which can only happen if an organisation's communication infrastructure enables them to reach, align and mobilise all of their people. This is easy to say and difficult to do,” said Gary Nakamura, SocialChorus CEO and board director.