More funding for HR startups
The Rs 30,000-crore HR industry is growing and attracting entrepreneurs that are not necessarily coming from HR but are determined to build products that can solve major HR challenges for businesses. The biggest segment in this industry lies in recruitment, which accounts for 70 per cent of the industry size.
Several startups have been trying to find a solution for the never-ending challenge of hiring. Each one of them is looking at solving the problem from a different perspective — looking at the recruiter’s and its own network and referrals like GrownOut.com; creating talent fairs like TalentPad.com or building efficiencies in the process by leveraging technology like TalentView.com, all of which got funded last year. Helion Ventures backed Talentpad (earlier TalentAuction) that won the TechHR Spotlight Awards in 2014; Matrix Partners backed GrownOut in October 2014 and Mayfield Fund invested in TalView.com, a finalist at TechHR Spotlight Award 2014.
Mynoticeperiod.com joins the group of Series A-funded companies trying to solve this problem. The company raised Rs 18 crore from IDG Ventures to expand its team and enhance its technology platform. Mynoticeperiod has over 80,000 job-seekers in their notice period and over 5,000 recruiters. The value is clear for both parties: those in their notice period are available to join faster, reducing the hiring lead time and improving efficiency. For jobseekers, it provides an opportunity to get an offer better than the one they hold. The number of people in their notice period every month in IT alone is estimated to be 38,000, as per Nasscom data.
Venture capitalists that otherwise were not investing in HR, have started to invest at the early stage as an opportunity where valuations soar quickly. The recruitment industry — in particular technologies that make recruitment more effective and efficient — will see a greater interest as the economy picks up. In many ways, India is leading the way in second-generation online hiring platforms and what could be scalable global technologies.