, a Microsoft-accelerated HRtech startup, has raised $10 million in funding from Tata Capital Growth Fund II, the flagship private equity fund of Tata Capital.
Tata Capital’s private equity arms will own 33 percent stake in the company after the investment.
Founded in 2014 by Prasad Rajappan, ZingHR has been leading tech-driven transformation in the HR domain, helping organisations to align their automation transitions with desired business outcomes while enhancing the employee experience.
“At Zing HR, our efforts have been focused on driving an employee-centric approach while helping organisations leverage technology in order to meet their business objectives,” said Prasad, MD and CEO of ZingHR, in a statement. “This funding will be critical in further taking 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. We wanted to raise real capital once we became EBIDTA and cash positive, which we achieved last year,” he further added.
The company plans to use the investment for geographic expansion, technology upgradation, and to strengthen the company’s outreach to the right talent.
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 now just need to scale up our efforts in global markets and with the new fundraise, we are going to aggressively pursue these markets,” Prasad added.
With this round, the startup has so far raised $12 million. It raised $2 million from seed and angel funding, and strategic investments. Accel Partners, serial entrepreneur Bhavin Turakhia, Mumbai Angels Network, and investment firm Triton have previously invested in ZingHR.
The startup has been profitable for the last 12 months and has an annualised revenue run rate (ARR) of $10 million, Rajappan said.
“Our target is to grow the revenues 10x over the next 12-18 months,” he said.
ZingHR has been leading the field in promoting the ‘Outcomation’ approach wherein the focus is on Tangible Business Outcomes (TBO) rather than automating people processes. So far, ZingHR has raised
The company serves over 700 enterprises with a million employee records with vertical-specific solutions for BFSI, retail, services, IT-ITES, staffing, pharma and healthcare, and manufacturing.
It offers complete solutions in HR using artificial intelligence, and machine and deep learning algorithms.
