Staffing services company TeamLease Services is set to acquire a stake in Pune-based Compliance and Regulatory technology firm, Avantis Softech LLP (‘Avantis’). Both the companies have announced the signing of a definitive agreement under which TeamLease will invest Rs.7 crore in Avantis.
While everything is in place, the transaction remains subject to customary closing conditions and regulatory approvals and is expected to close before the end of September 2018. After the agreement, Avantis will be converted into a private limited company and will operate as a separate and independent entity.
The transaction involves a primary investment of Rs. 7 crore through CCPS (Compulsorily Convertible Preference Shares) over the next 3 years.
The added funds will be primarily used to expand Avantis’ business into new geographies, to strengthen its existing technology and to explore new forms of delivery.
Ashok Reddy, Managing Director, TeamLease Services said, “Our partnership with Avantis provides important infrastructure for our vision of Paperless, Presence less and Cashless compliance for India’s big and small entrepreneurial ecosystem. Making compliance painless will make India a more fertile habitat for formal job creation.”
“Teamlease has the scale, experience, and credibility that truly enables our vision of Ease-of-doing Business (‘EODB’) 3.0. EODB 1.0 was the end of the license raj and EODB 2.0 was GST but EODB 3.0 will digitize the plumbing of all compliance for small and big employers. India has the opportunity to skip the evolution and move directly to a regulatory and compliance system more efficiently and effectively than developed countries,” said Rishi Agrawal, CEO, Avantis.
While Teamlease will help Avantis in achieving its vision of of Ease-of-doing Business (‘EODB’) 3.0, Avantis’s market validated compliance platform and ability to conceptualize and build cutting-edge technology plug-ins/interfaces will help TeamLease strengthen its position in the RegTech landscape and the vast market in the Compliance and Payroll Outsourcing (CPO) segment.
While TeamLease continues the DFM (Do it for Me) services in CPO business, all tech-enabled DIY (Do it Yourself) services will be carried out by Avantis.
The company that was co-founded by Rishi Agrawal and Sandeep Agrawal, today has credibility across large enterprises and SMEs with implementations across 29 states and 7 Union Territories in India with quick and easy onboarding and a Mobile App based Compliance tracking and management. Avantis’s SAAS (Software as a Service) Platform covers over 1200 Acts and over 55,000 compliances in India. Avantis’s strong compliance assessment and research capabilities leverage cutting-edge technologies such as AI, ML and OCR.