Running payroll is a tough task in any country, but it can be especially challenging in Brazil due to constantly changing laws and powerful unions. Fernando Gadotti, former co-founder of DogHero, encountered these difficulties after selling the company and decided to tackle this issue head-on.

Struggling with manual payroll processes, Gadotti launched Tako, a São Paulo-based platform that automates tasks like onboarding and payroll to save time for companies. Tako also offers employees a dashboard to access information and an interactive paystub for transparency.

With Brazil’s unique payment system and frequent changes in labor laws, Tako uses an LLM to stay up-to-date. The platform ingests data and allows developers to keep the code current, saving time and ensuring accuracy.

In 2023, Tako officially launched its product after processing millions in payroll while operating in stealth mode. Targeting mid-market white-collar companies with 100-500 employees in professional and financial services, the company aims to simplify complex payroll processes.

Securing a $13.2 million seed round led by Ribbit Capital and Andreessen Horowitz, Tako plans to expand research and development efforts. With potential growth into areas like employee benefits and instant payments, the platform may face competition from other HR tech startups in Brazil.

Meaning “octopus” in Japanese, Tako’s platform acts as the central hub for employee data, extending its reach into different aspects of employee management. By focusing on the entire employee life cycle, Tako aims to address customer pain points and enhance their overall experience.