In a strategic move to bolster its global presence, Indonesia-based enterprise performance management software startup Happy5 has announced it is acquiring Singapore-based startup SugarOKR for an undisclosed sum.
This acquisition marks a significant milestone in Happy5’s growth strategy, positioning the company for expansion into new international markets, including the United States, Happy5 said in a statement on Tuesday.
According to the statement, this acquisition of SugarOKR, a renowned player in the objectives and key results (OKR) tracking software space, underscores Happy5’s commitment to providing comprehensive solutions that cater to the evolving needs of modern businesses.
With this acquisition, Happy5 aims to leverage SugarOKR’s cutting-edge OKR tool and expertise to accelerate its expansion into new territories and embark on its next phase of growth.
One of the most immediate benefits of Happy5 acquiring SugarOKR is the former’s entry into the highly competitive US market.
SugarOKR’s established presence in the region, along with its reputation for delivering robust OKR solutions, will provide Happy5 with a solid foundation for expansion.
“Happy5 has achieved a strong product market fit and is profitable with over $1 million in annual recurring revenue. The firm wants to expand overseas, starting with the United States, the most mature SaaS market with a high adoption rate,
“SugarOKR’s customer base, of which 20 percent are based in the US, offers the company the perfect lead-in to this brand-new market,” said Timothy Kua, Founder and Chief Executive Officer of SugarOKR.
Doni Priliandi, Founder and Chief Executive Officer of Happy5, said their priority is on expanding into the US market.
“Timothy brings his vast experience and skill set in building and scaling businesses of all sizes,
“With him leading the charge, coupled with the SugarOKR platform, which already has a strong global presence, Happy5 will have the much-needed boost to our global expansion efforts,” he added.
In addition to geographical expansion, the acquisition will significantly enhance Happy5’s product capabilities.
SugarOKR’s advanced OKR tracking software will complement Happy5’s existing suite of employee performance management software solutions, allowing companies to align their workforce around clear, measurable goals while maintaining a strong focus on employee well-being.
This comprehensive offering will be a game-changer for businesses looking to drive both individual and organizational performance, said the statement.
Looking ahead to the future for Happy5 and SugarOKR, there are currently no plans to integrate SugarOKR’s technology and team into the existing operations of Happy5.
Instead, SugarOKR will continue operating as a standalone goal management software company.
However, Happy5 plans to use SugarOKR’s website as a lead magnet to convert existing SugarOKR customers to Happy5’s platform, allowing them to benefit from the latter’s more robust platform.
In addition, following the acquisition of SugarOKR, Happy5 plans to expand globally even more rapidly while maintaining a focus on the US market by the fourth quarter of 2024.
It also targets to close 20 US customers by the second quarter of 2025 and raise between $3 to $5 million by the second quarter of 2025.
Talks are already ongoing with various venture capitalists (VCs) to raise funding for the global expansion.
“Our key goal is to secure a VC based in the US as part of the mix. The SugarOKR acquisition, with Timothy Kua on board, will give VCs more confidence with a stronger leadership team and a leg-up from the SugarOKR platform,” added Doni Priliandi.
Happy5 is a provider of enterprise performance management solutions that empower organizations to level up their workforce.
Their suite of products in a single unified platform includes goal management (OKRs/KPIs), project management (tasks/initiatives), and performance management (360 reviews).