HR TECH INDUSTRY

In this digitized world, if you are not leveraging technology to do business, then probably you
are not doing your business right. Technology has carved out its place in every aspect of business
environment, with new addition is that to the HR. In the recent years, HR-Tech has seen a
tremendous growth.

The HR software is expected to reach $9.89Bn by 2022. The technology can help Indian
companies to save them on significant human resource costs. They can save upto $600mn
annually by using HR technology (PeopleStrong, 2017).According to Tracxn, VC have invested
Rs 1000 Crore in HR Tech startups and in 2019 , Indian HR tech startups have received around
$116Mn.

Here is a detailed analysis of HR Tech startups which includes the following topics:-

1. Background
2. SWOT Analysis
3. Some successful HR tech startups in India
4. Top investments in HR Tech firm in India in 2020
Background:-
Technology and workplace are not mutually exclusive. Instead, they are complementary to one
and another. Technology is being in various aspects of business. And one such area is HR, using
technology in HR space has increased its scope and help to carry out various functions like
recruitment, training, payroll etc. effectively and efficiently. The scope of HR tech start-ups have
recently gained wide momentum. Advancements in IT coupled with lowering cost of internet is
further expected to increase its growth

In today’s dynamic market, where trends evolves on a continuous basis, HR Tech firms can
provide significant advantages to firm, thus, making it agile and helping them to hire the skilled
employees as per current trends in market. These firms have significantly turned tedious HR
activities into more systematic and organized activities thereby increasing the retention rate of
employees and improved trainings sessions as a result of accurate identification of the areas the
employees may be lacking in.

The global human resource management market size was valued at USD 16.01 billion in 2019
and is expected to exhibit at a CAGR of 11.7% from 2020 to 2027.The HR software is expected
to reach $9.89Bn by 2022. HR tech can help Indian companies to save on significant human
resource costs. They can save upto $600mn annually by using HR technology (PeopleStrong,
2017).According to Tracxn VC have invested Rs 1000 Crore in HR Tech startups and in 2019 ,
Indian HR tech startups have received around $116Mn.
 SWOT ANALYSIS

STRENTGHS WEAKNESS
 ADAPATIVE  NO INTERPERSONAL
 EASY TO USE AND REALTIONS BETWEEN
ADMINISTER FOR HR EMPLOYER AND
DEPARTMENTS EMPLOYEE
 MAINTENACE COSTS OF
 LOW TURNOVER
TECHNOLOGY
 SKILLED WORKFORCE

OPPORTUNITIES THREATS
 EMERGING MNC’S  INCREASING
 ADAVANCEMENTS IN COMPETITION
TECHNOLOGY  SECURITY OF
 OUTSOURCING OF HR DATABASE
ACTIVITIES BY FIRMS
Some successful HR tech startups in India
1. Darwinbox :-
It was founded in 2015 by Chaitanya Peddi, Jayant Paleti, and Rohit Chennamaneni.The
firm uses to technology to manage the HR activities for large companies using unified
platform.

2. ReferHire :-
It was founded by Founded by Rohit Tewari and Jaspreet Obero and is community of 96,
066 companies.By offering peer to peer network services, it solves various HR problems
of the firms.

3. Avsar :-
Founded in 2016 by Satyabrata Sethy, Navneet Singh, Nitish Rao, and Prateek Jha Avsar
is an Indian HR tech startup firm that delivers customer-centric services and flexible and
top quality services.

4. ZigHR :-
It was founded by Prasad Rajappan in 2014.It uses machine learning and artificial
technology to provide various HR services

5. Culturro :-
Started in 2017 , this HR Tech startup is working with a vision to create the right
workplace experiences for companies to let them achieve their strategic objectives.

6. Betterplace :-
This firm provides digital solutions for workforce management .It believes in
empowering people through technology which helps them to improve their performance.

7. Leena AI:-
By using AI and understanding your unique needs ,this firm provides you HR solutions
that increases the productivity and effectiveness of the employees.

8. Cityflo :-
It is app- based bus service that provides AC buses for employees to compute easily so
that employees can enjoy have a comfortable and stress free commute.
9. Skillenza
It was Started in 2012 by Subhendu Panigrah, Prashant Koirala and Rajesh Rai,Skillenza.
It act as one stop destination for various services like networking , peer learning , social
connections etc.

10. Callify.ai
It is using cloud – based services that solves recruiting problems of the firms. It has
raised significant seed funding from various sources.

Top investments in HR Tech firm in India 2020

1. Eightfold AI raises $125Mn (Series D funding)

The main source is given by US capital venture General Catalyst.The other investors
included Capital One Ventures, Foundation Capital, IVP, and Lightspeed Venture
Partners

2. Betterplace raises $10Mn(Series B)

The firm has raised $10Mn from Jungle ventures.A total of $16 Mn dollar is raised by
the firm since its inception. Some of the investors of Betterplace are Unitus Ventures,
3One4 Capital, and Venture Highway

3. Leena AI has raised $8Mn (Series A)

Leena has successfully raised $8Mn which is led by Greycroft.This round of funding
also witnessed personal investments from Adam Miller , Alan Patricof and Jim
Moffatt.

4. WorkIndia raises funds from Xiaomi

Xiaomi has invested around $5.63Mn in WorkIndia , blue-collar HR Tech
firm.Previous investors includes marquee VC investors such as Beenext Pte ltd and
chairman of top hedge fund of Japan.

5. InFeedo :-
The firm has raised $3.2Mn which was led by Benjamin Ling, the founder of Bling
Capital .Also he was the former Khosla venture partner.Other investors who
participated were Maninder Gulati(strategist at OYO) and Girish Mathrubootham(
founder of Freshworks)
6. Able Jobs raises $1.8 Mn seed money
Recently started in 2019 , this HR tech firm has raised this seed money in August
2020.The funding was led by SAIF partners.

7. Zimyo raises $1.5Mn (Seeding Stage)

The Zimyo ‘s seed money of $1.5Mn is funded by BEENEXT.The other investors
who participated in the round were Yatra Angel Network , and some angle investors
like Abhishant Pant (Founder of FinTech Network) and Navin Surya.

8. TurboHire gets $1Mn seed Money

The AI based talent discovery HR tech firm TurboHire has raised $1Mn in seeding
stage from institutional investors. Pentathlon Ventures led the the investment round