HUB > Companies > Quinyx
From last funding transaction in Aug-2014.
Founded in 2005, Quinyx provides a SaaS alternative. The firm was set up by Erik Fjellborg while still a student at the Stockholm School of Economics. Fjellborg experienced traditional employee management software first-hand during a part-time job at McDonald’s. Not only were the system’s inadequacies (such as an inability to quickly and easily change shifts) obvious to a fresh pair of eyes, but to ‘digital native’ Fjellborg, the advantages of the internet and the possibility of cost savings from delegating responsibility to employees for administering their schedules were obvious.
Of course there are many young proto-entrepreneurs with good business ideas. But good ideas are worthless without execution and few have the ability to follow through, set up and grow a company while still studying – Mr. Fjellborg did not finish his degree until 2011. Nonetheless, in 2009, Quinyx opened offices in Denmark, Germany and the UK as well as setting up a new operations centre in Geneva. Smartphone functionality was added in 2011 and the firm has diversified from the fast food industry into other personnel- intensive sectors such as call centres, construction, healthcare, retail, hotels and restaurants, as well as the public sector.
Quinyx now has more than 100,000 users and its customers include major corporates such as Burger King, Compass Group, Deutsche Telekom, Fedex, Santander, Subway and, naturally, McDonald's. With revenues of €4mn in 2013, the firm expects to do over €5.5mn in 2014 (37% growth).
As with so many opportunities that are worth pursuing, a variety of competitors are also entering the market with SaaS alternatives to legacy ‘heavy iron’ systems. Examples include Danish firm Planday which received $3.8mn (c.€2.8mn) from Creandum and RECAPEX in May this year, San Francisco based Shiftplanning which has just received $3.2mn (€mn) from MHS Capital and Point Nine Capital, and Canadian firm 7Shifts.
Moreover, incumbents have had time to watch SaaS eat into the market share of conventional enterprise software firms in other sectors. Those with competent management will have been doing something about it. An obvious example is SAP, whose current offering in this area is the SAP Human Capital Management system. As described in our coverage of SaaS content management supplier Alfresco above, SAP has gradually been increasing its portfolio of SaaS offerings.
Of course market leadership amongst the new SaaS entrants will be determined by breadth of coverage (can the system go beyond basic workforce management to include absence management, for example), integration with other existing systems (such as payroll) and, as always, ease of migration to the new system. While legacy players such as Kronos – which has 25% of the global market – in principle have plenty of money to develop their own systems, they may be hampered by the need to maintain backward compatibility with their existing products or migrate existing customers to new SaaS products. It may be simpler and quicker for them to buy up one of the new entrants.
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