Managing payroll in Brazil is notoriously complex, with ever-changing regulations and influential unions creating challenges for businesses. Recognizing this, Fernando Gadotti, co-founder of DogHero, launched Tako, a São Paulo-based fintech, to simplify payroll and employee management.
Tackling Payroll Complexity
Gadotti, who sold DogHero in 2020 and departed in 2022, describes the payroll process as a recurring pain point. “Payroll was always dreadful—endless hours spent double-checking data without meaningful insights,” he shared. The inefficiency, he realized, was more than an inconvenience; it was stifling growth.
To address these challenges, Tako offers an employee lifecycle platform designed to automate payroll and onboarding processes. It consolidates employee data into a centralized system, giving employers better visibility and saving time. Employees benefit too, with access to an interactive paystub and a dashboard for improved transparency.
The Unique Challenges of Payroll in Brazil
While global payroll solutions like ADP exist, Gadotti emphasizes the need for localized solutions tailored to Brazil’s unique labor laws. Frequent legal updates and the influence of 10,000 unions—each with its own rules—make payroll especially daunting.
Tako integrates advanced technology, including Large Language Models (LLMs), to stay ahead of legal changes. By processing labor and union law data, the LLM ensures Tako’s platform is up-to-date, although human oversight remains crucial to maintain accuracy.
Strategic Focus and Early Success
Launched in 2023, Tako has already processed tens of millions of dollars in payroll during its stealth phase. The company is targeting mid-market professional and financial services businesses with 100–500 employees, avoiding overly complex sectors initially.
“We’re not trying to boil the ocean,” Gadotti noted. “We’re starting with simpler segments and will expand into more complex areas over time.”
Securing Backing for Growth
Tako recently emerged from stealth, announcing a $13.2 million seed round co-led by Ribbit Capital and Andreessen Horowitz (a16z). The round also saw participation from ONEVC and Ramp founders. The funding will primarily fuel research and development, with plans to significantly grow Tako’s R&D team.
Future Expansion
Tako has its sights set on broader HR functionalities, including employee benefits and instant payments. While competing with legacy providers like ADP, Tako may also face challenges from Brazilian HR tech startups like Gupy and Caju, which focus on adjacent areas of employee management.
Why “Tako”?
The name Tako—Japanese for “octopus”—symbolizes the platform’s mission to act as the central hub for employee data, extending its “tentacles” into various facets of HR and employee management.
“We’re focused on the entire employee lifecycle,” Gadotti said. “By listening to our customers, we can address their pain points and grow alongside their needs.”
As Tako continues to expand, it is poised to redefine how Brazilian businesses manage payroll and employee data, setting the stage for further innovation in the HR tech space.
