AI startup Shapes raises $24m to automate HR tasks such as onboarding

A Tel Aviv-based startup is using artificial intelligence agents to automate core human resources tasks such as onboarding, compensation and payroll, as demand grows for more efficient people-management tools.

Shapes, an HR technology company formerly known as DreamTeam, has raised $24 million in funding to expand its platform, which deploys AI agents to handle routine HR workflows. Business Insider reported that the company’s tools allow HR teams to automate processes that traditionally require significant manual effort.

Founded in 2020 by Arnon Nir and Shirley Baumer, both early employees at HR software company Monday.com, Shapes offers what it describes as an app store for HR. The platform, branded internally as “PeopleOS”, allows organisations to install pre-built AI agents or create their own using prompts, similar to the way developers now build software with generative AI.

Nir told Business Insider that the aim is to give companies greater control over how they manage employees. He said AI agents can, for instance, flag when an employee may be at risk of leaving by analysing indicators such as pay levels, performance data and attendance patterns.

Beyond retention signals, the platform automates workflows including contract drafting, payroll processing and time-off management. Employees can also interact directly with AI agents to access company policies or submit routine requests, reducing the administrative burden on HR teams.

The funding comprises a $15 million Series A round completed in October, alongside a previously undisclosed $4.5 million seed round and a $4.5 million seed extension. According to Business Insider, the Series A was led by Entrée Capital, with participation from NFX and F2 Venture Capital, which led the initial seed investment.

Shapes operates on a software-as-a-service model, charging companies a flat fee per employee. The company said it has hundreds of customers across 79 countries and 14 industries, including retail, manufacturing and technology. Clients include Quantum Machines, NextSilicon, Healthee, Arena Entertainment and Imagen.

The HR technology market has become increasingly crowded, with established players such as Workday and HiBob embedding AI features into their platforms. Nir said Shapes’ modular design differentiates it from competitors by allowing companies to tailor HR systems to their specific operating models.

Baumer told Business Insider that organisations are being forced to rethink workforce structures as AI reshapes how work is done. She said the platform is designed to help companies adapt as headcounts fluctuate and roles evolve.

Shapes said it plans to use the new capital to more than double its workforce over the next year and expand into additional markets, betting that AI-driven HR systems will become a core part of enterprise infrastructure rather than an experimental add-on.