Goldman Sachs Alternatives acquires majority stake in HR SaaS firm PeopleStrong

PeopleStrong

PeopleStrong on Tuesday announced that Goldman Sachs Alternatives' private equity business has acquired a majority stake in Gurgaon-based HR software-as-a-service (SaaS) firm.

"We have remained focused on balanced, sustainable growth and are proud to stand out today as one of the few EBITDA-positive SaaS companies with a leading market position. We are excited to join forces with Goldman Sachs.

"With their global expertise in SaaS (Software as a Service) and AI, we look forward to driving the next phase of our growth together through continued innovation and operational excellence," Sandeep Chaudhary, CEO of PeopleStrong, said.

The SaaS firm offers an AI-driven human capital management (HCM) platform with capabilities spanning applicant tracking systems (ATS), payroll, employee experience, and talent management.

PeopleStrong was founded by Pankaj Bansal in 2005 and currently serves over 500 companies. It has operations across India, Singapore, Thailand, the Philippines, Vietnam, Indonesia, Australia, New Zealand and the Middle East.

Its clientele includes Aditya Birla Group, L&T, Cholamandalam, TATA, Mahindra, Kotak Mahindra Bank, HDFC Ergo, Paytm, RBL Bank, HDFC Life, OLA, Air India, Cipla, Schneider, Amara Raja, Indigo, and V-Mart.

According to Tracxn, Multiples PE held 84.3% stake in PeopleStrong while employee stock option (Esop) comprised of 9.7% of the shares allocated. The company’s founder holds 2% stake, while the early backers and angel investors owns the rest of the stake.

Its total revenue was Rs 274.5 crore in FY 2024, marginally higher than Rs 271.7 crore in FY23, as per the company’s regulatory filings.

It reported Rs 57 crore in net profit for the year ended March 2024, compared to a Rs 84 crore net loss in the year-ago period.