B2B Marketplace IndiaMART announced on Thursday that it has made an investment of approximately Rs 17.01 crore in Zimyo Consulting Private Limited. IndiaMART has stated that the investment is in line with the company's long-term objective of offering various Software as a Service (SAAS) based solutions for businesses.
Zimyo Consulting, under the brand name 'Zimyo', offers SaaS-based human resource management software for businesses. This software allows users to carry out critical HR processes including recruitment and onboarding, payroll management, performance management, and time & attendance management. It also includes employee benefits modules which offers salary advance, personal loan and health & term insurance to employees.
The final aggregate shareholding of IndiaMART, post this investment, in Zimyo would be 10 per cent on a fully diluted basis. IndiaMART has subscribed to 1,870 Series A Compulsorily Convertible Preference Shares (CCPS) of face value of Rs. 10 per CCPS at a premium of Rs 86,306, aggregating to approximately Rs. 16.14 crores. It has also purchased 100 equity shares of face value of Rs. 10 per equity share at a premium of Rs. 86,306 aggregating to approximately Rs. 0.86 Crores.
Dinesh Agarwal, founder, and CEO of IndiaMART, explained that the COVID-19 pandemic has accelerated the adoption of SaaS based HR Management solutions by new age as well as traditional businesses.
He added that apart from Zimyo's core Payroll and attendance management modules, IndiaMART also feels that there is immense potential in Zimyo's vision of providing comprehensive HR management modules and other benefits to employees as well as employers.
"This investment is another step towards IndiaMART's long term vision of providing a holistic ecosystem for all business needs, and we are excited to partner with the Zimyo team for their next phase of growth," said Agarwal.
Commenting on the investment from IndiaMART, Kumar Mayank, CEO of Zimyo, said "India is home to one of the world's youngest populations, which by 2050 is expected to account for over 18 per cent of the global working population. Millions of employees of the small and mid-size businesses, which form over 45 per cent of this working population is forced to choose between paper, or HR solutions that aren't designed for them."
"Zimyo wishes to bridge the gap. We want to be the go-to HR Platform that both the SMB and the employee chooses for meeting its HR and benefits' needs," he added.
Since its listing on BSE and NSE, IndiaMART has invested in companies such as Vyapar, Bizom, Shipway, Legistify, Superprocure, Aerchain, M1xchange, Easyecom, Fleetx, Industry Buying, Realbooks and BUSY. The firm has stated that all these investments are part of IndiaMART's long term objective of offering various software solutions which improve ease of doing business for Indian businesses and enterprises.
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