Bridgepoint, a UK-based private equity firm, is leading a €200 million funding round in Skello, a French HR software company that uses artificial intelligence. The deal, expected to close in the coming months, would make Bridgepoint Skello's lead minority shareholder, according to sources familiar with the matter.
The investment is expected to come from Bridgepoint Development Capital V, one of the firm's growth-focused funds. The structure allows Skello's founders, management, and some existing backers to reinvest, with management increasing its stake in the company.
What Skello Does
Skello provides cloud-based HR and workforce management software that helps businesses schedule shifts, track time, and manage employee absences. The company has integrated AI features to optimize scheduling and predict staffing needs, making it popular among retail, hospitality, and healthcare clients in France.
The startup has grown rapidly since its founding in 2016, raising previous rounds from investors including Partech and Aglaé Ventures. It now serves thousands of businesses across Europe, though France remains its largest market.
Why This Deal Matters
The €200 million round is one of the larger investments in European HR tech this year, signaling continued investor appetite for AI-powered workplace tools. For Bridgepoint, the deal represents a bet on Skello's ability to expand beyond its home market and take on larger competitors like Workday and SAP SuccessFactors.
Skello plans to use the funds to cement its position in France, push into more European markets, and ramp up hiring in the second half of 2026, including AI roles. The company is also expected to invest in product development, particularly around AI-driven features that can differentiate it from rivals.
The deal comes as private equity firms increasingly target software companies with recurring revenue models and strong growth potential. Bridgepoint's investment is structured as a minority stake, allowing Skello's founders to retain control while accessing capital for expansion.
What It Means for Investors
For everyday investors, this deal highlights the growing importance of AI in HR software, a sector that has seen steady demand as companies digitize their workforce management. While Skello is not publicly traded, the investment signals that private markets see value in AI-driven HR tools, which could eventually lead to an IPO or acquisition.
The deal also underscores the trend of private equity firms backing European tech startups. Bridgepoint's involvement may provide Skello with operational expertise and access to a broader network of potential customers, particularly in markets like the UK and Germany.
Investors should note that the HR software market is competitive, with established players and well-funded startups vying for market share. Skello's success will depend on its ability to execute its expansion plans and maintain its AI edge.
In other deal news, Bain, KKR, and KV Asia are vying for a minority stake in Malaysian hospital group Avisena, while Aramco Ventures led an $800 million Series C in Together AI at an $8.3 billion valuation, showing the breadth of private capital flowing into tech and healthcare.
Looking Ahead
Skello's expansion plans come as European tech funding shows signs of recovery after a slowdown in 2023 and 2024. The company's focus on AI hiring aligns with broader industry trends, as businesses across sectors race to adopt AI tools.
The second half of 2026 will be a key period for Skello, as it begins to deploy the new capital and scale its team. Investors will watch for updates on customer growth, revenue, and market share in new countries.
For now, the deal underscores the continued appeal of AI-powered software companies, even as broader economic uncertainty persists. Skello's ability to execute its European expansion will determine whether this investment pays off for Bridgepoint and other backers.
