Goldman Sachs Alternatives, the private equity arm of the global investment bank, has acquired a majority stake in PeopleStrong, a leading HR SaaS provider headquartered in Gurugram, India.
This acquisition represents a significant milestone for PeopleStrong.
It positions the company for accelerated growth and innovation in the human capital management (HCM) space.
The deal underscores Goldman Sachs’ commitment to investing in transformative technologies and expanding its footprint in the SaaS industry.
The acquisition aligns with PeopleStrong’s ambitious growth strategy, which includes expanding its operations in the Middle East and Asia-Pacific regions.
The company plans to invest in research and development to tailor its solutions for evolving regulatory and operational landscapes.
Additionally, PeopleStrong is actively pursuing strategic partnerships to deepen its footprint across key markets.
Details of Goldman Sachs’ Acquisition of PeopleStrong
The transaction is valued at approximately $130 million (₹1,200 crore).
Goldman Sachs acquired an 84% stake previously held by Multiples PE and shares from the employee stock option pool.
Multiples PE had initially invested ₹400 crore in PeopleStrong in 2017, making this deal a threefold return on its investment.
The acquisition also includes plans to expand PeopleStrong’s user base from 2 million to 10 million globally over the next five years.
PeopleStrong’s Market Position
Founded in 2005 by Pankaj Bansal, PeopleStrong has established itself as a leader in the HR SaaS domain.
The company offers an AI-powered HCM platform with capabilities spanning applicant tracking systems (ATS), payroll, employee experience, and talent management.
Serving over 500 enterprises across Asia-Pacific, PeopleStrong’s clientele includes prominent names such as Aditya Birla Group, L&T, Tata, Mahindra, Kotak Mahindra Bank, and Air India.
Strategic Vision and Financial Performance
Sandeep Chaudhary, CEO of PeopleStrong, expressed enthusiasm for the partnership, stating, “We are excited to join forces with Goldman Sachs.”
He added, “With their global expertise in SaaS and AI, we look forward to driving the next phase of our growth through continued innovation and operational excellence”.
Goldman Sachs aims to leverage its global resources and network to support PeopleStrong’s expansion and innovation efforts.
PeopleStrong has demonstrated balanced and sustainable growth, standing out as one of the few EBITDA-positive SaaS companies in the market.
In fiscal 2024, the company reported revenues of ₹274.5 crore and a net profit of ₹57 crore, a significant turnaround from the ₹84 crore net loss in the previous year.
This financial stability further enhances its appeal as a strategic investment.
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