Tata Capital Growth Fund II, the flagship private equity (PE) fund of Tata Capital, has invested $10 million (around Rs 74.25 crore) in ZingHR, which provides end-to-end employee lifecycle management services, the cloud-tech HR startup said in a statement.
After the investment, Tata Capital will pick up around 33% equity stake in the company.
An additional $1 million has been raised from existing investors, said Prasad Rajappan, MD and CEO, ZingHR.
The Mumbai-based HR tech platform’s existing investors include Accel Partners, serial entrepreneur fintech startup Zeta's Co-founder Bhavin Turakhiaco-founder Bhavin Turakhia, Mumbai Angels Network and investment firm Triton.
The company claims that with the latest investment, ZingHR, which is operated by Zinghr Techno India Pvt. Ltd, has raised $12 million so far.
"Of the investment, around 30% will be utilised for further geographic expansion, with 30% towards technology upgradation, and the remaining to strengthen the company’s outreach to the right talent,” said Rajappan.
Founded in 2014 by Rajappan, ZingHR helps organisations to align their automation transitions with desired business outcomes while enhancing the employee experience, the statement said.
Rajappan, which turned profitable last year, plans to grow 10 times over the next three years.
"At ZingHR, our efforts have been focused on driving an employee-centric approach while helping organisations to leverage technology in order to meet their business objectives. This funding will be critical in taking further our expansion plans and strengthening our Outcomation approach across different verticals. We are also pleased to work with Tata Capital Growth Fund with whom we share similar ethos and values of building an employee-centric workplace ecosystem,” said Rajappan.
Tata Capital Growth Fund is a $240 million (around Rs 1,700 crore) private equity fund of Tata group's financial arm Tata Capital, which manages third party capital raised from investors globally. The fund targets growth capital investments in companies that derive a substantial portion of their revenues from operations in India.
Last year in January, Tata Capital Growth Fund II was launched with a Rs 1,250 crore (around $168 million) corpus, sized down significantly from the targeted Rs 2,400 crore (around $322 million).
"We believe adoption of SaaS based processes will decide future winners as businesses go digital. Zing HR’s SaaS solution is robust, nimble, adopted by marquee customers and is shepherded by the astute vision and experience of Prasad Rajappan," said Akhil Awasthi, Managing Partner – Tata Capital Growth Fund.
ZingHR currently serves over 700 enterprises, with a million employee records with vertical-specific solutions for BFSI, retail, services, IT-ITes, staffing, pharma & healthcare and manufacturing. It offers complete solutions in HR using artificial intelligence, machine and deep learning algorithms.
Apart from India, ZingHR operates in the Middle East, South East Asia, Australia and will soon be spreading to Europe, Africa and the US, the statement said.
