Goldman Sachs is reportedly in negotiations to acquire PeopleStrong, a prominent HR tech firm based in Gurugram. The investment bank’s private equity division is eyeing a majority stake in the company, which could be valued between ₹1,300-1,500 crore, according to sources familiar with the matter.
PeopleStrong’s Growth and Industry Presence
Founded in 2005 by Pankaj Bansal, PeopleStrong has become a significant player in the cloud-based human resource management software industry. It offers solutions spanning the entire employee lifecycle, from hiring to exit. With more than 500 major clients across Asia, including Tata Capital, ICICI Prudential, and Royal Enfield, PeopleStrong has established itself as a key provider for large enterprises managing over 2 million employees.
Investment and Stakeholders
Multiples Alternate Asset Management owns 84% of PeopleStrong, with the rest of the shares held by angel investors and employee stock options. The firm had acquired a stake in PeopleStrong in 2017 for ₹518 crore. Despite challenges in profitability, including a negative EBITDA of ₹80 crore in FY23, the company’s consistent client base and strategic acquisitions have enhanced its market position.
PeopleStrong’s Competitive Edge
Competing with industry giants like Oracle Cloud HCM, Zoho People, and Workday HCM, PeopleStrong continues to expand its reach. It has acquired multiple companies over the years, including Grownout in 2018 and Qilo in 2019, strengthening its SaaS HR platform, Alt, and expanding its offerings in the global market.
The Future of PeopleStrong
If the acquisition deal goes through, it could further accelerate PeopleStrong’s innovation and growth in the HR tech space, positioning it as a more formidable competitor in a rapidly evolving market.
Let us know your thoughts on this major acquisition deal and its impact on the HR tech industry.
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