India – Teamlease acquires stake in job board

By memberservices@staffingindustry.com (Adam Pode, CCWP)

TeamLease Services, the largest staffing firm in India, is buying a 30% stake in online job portal Freshersworld.com, valued at around Rs18 crore (USD 2.8 million), to scale up its hiring business according to Deal Street Asia

Subject to closing conditions and regulatory approvals, the deal is expected to close before the end of July 2017, TeamLease said in a statement. The deal is structured as an all-cash tender financed with existing cash reserves of TeamLease. Benguluru-based Freshersworld which is dedicated to entry-level hiring, will continue to operate as an independent entity.

Under the agreement, TeamLease will infuse another Rs2 crore (USD 309,455) to enhance product features and back-end technology at Freshersworld. Teamlease will also consider increasing its stake further or a 100% acquisition in the next three years, depending on the portal’s performance.

“We have a large recruitment team and physical presence across locations but we are looking at multiple variables which can effectively increase scale and bring in economies and improve the reach. One of the variables is having a strong technology platform at the back-end,” said Ashok Reddy, managing director, TeamLease Services.

Joby Joseph, founder and chief executive of Freshersworld said: “The partnership with Teamlease will allow us to create a formidable force with enhanced product offerings in building databases, online job matching, assessments and background verification.”

Source:: India – Teamlease acquires stake in job board