Following our earlier report about the possibility of an association between the two organizations, Multiples PE has finalized a substantial stake in PeopleStrong for Rs 400 crore, sources close to the deal that did not wish to be quoted, said. The funding will be utilized to acquire other HR companies in India and across Asia. It would also look to strengthen its existing products, viz the HR App and the HR chatbot ‘Jinie’ that it launched last year.
The sources also shared that apart from Multiples, HDFC Holdings will continue to be the other big investor in the firm. Withya HR Fund and other angel investors will be redeeming their equity.
Sources also confirmed that employees will be availing their share money, by liquidating some portion of their shares in the company. PeopleStrong’s management team will continue to hold the same shares, post the deal. Renuka Ramnath, founder of Multiples Equity will join the board members; and company co-founders Pankaj Bansal and Shelly Singh will stay on the board. This information could not be officially confirmed.
The news of this development comes at a time when the Indian HR industry is shifting decisively from services to technology. As the talent challenges of organizations have evolved, so have the solutions around them. Predictive analytics, appification, social media and gamification are focal points in HR technology conversations today. Companies that acknowledge the evolving dynamics of people management in the transitional environment are gaining confidence in the advantages of HR Outsourcing, automation and digitization. All of this augurs well for HR outsourcing and technology-based companies, who now have small and medium enterprises (SMEs) too, on their roster of clients in addition to the traditional mainstays: the large enterprises.