Tata Capital Fund endows USD 10 million in ZingHR
By siliconindia | Monday, 17 January 2022, 03:20 Hrs
ZingHR has secured $10 million (Rs 74.3 crore) from Tata Capital Growth Fund, the Mumbai-based HR-tech startup’s founder said. With this investment, Tata Capital’s private equity arm will own a 33% stake in the company.
The company will use the capital for expansion into more global markets, upgrade technology and to beef up its talent pool, Prasad Rajappan, who is also its chief executive, said.
ZingHR’s other backers are Accel Partners, serial entrepreneur Bhavin Turakhia, Mumbai Angels Network and investment firm Triton. With this round, the startup has so far raised $12 million.
The Microsoft-accelerated startup has been profitable for the last 12 months and has an annualised revenue run rate of $10 million, Rajappan said.
“Our target is to grow the revenues 10x over the next 12-18 months,” he said.
As per Rajappan, the company has a presence in markets such as Australia, Southeast Asia and the Middle East and will now look at expanding to Europe, more countries in the Middle East, North Africa and the US. “We just have to now scale up our efforts in global markets and with the new fund raise, we are going to aggressively pursue these markets,” he added.
Founded in 2014 by Rajappan, ZingHR offers tech-driven solutions in the HR domain that help organisations align their automation transitions with business outcomes while enhancing employee experience. The company serves over 700 enterprises with a million employee records with vertical specific solutions for BFSI, retail, services, IT-ITeS, staffing, pharma & healthcare, and manufacturing, Rajappan said. It offers the solutions using artificial intelligence, machine and deep learning algorithms.
“We believe adoption of SaaS-based processes will decide future winners as businesses go digital. Zing HR’s SaaS solution is robust, nimble and adopted by marquee customers,” said Akhil Awasthi, managing partner – Tata Capital Growth Fund.
“This funding will be critical in taking further our expansion plans,” said Rajappan.