TeamLease to buy 30% stake in Freshersworld
TeamLease Services will buy a 30% stake in Freshersworld.com, to infuse Rs2 crore to enhance product features and back-end technology at the job portal
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Mumbai: Temporary staffing company TeamLease Services Ltd on Monday said it will buy a 30% stake in online job portal Freshersworld.com, valued at around Rs18 crore, to scale up its hiring business.
The transaction, subject to closing conditions and regulatory approvals, 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, it added. Benguluru-based Freshersworld, dedicated to entry-level hiring, will continue to operate as an independent entity.
Under the agreement, TeamLease will infuse another Rs2 crore to enhance product features and back-end technology at Freshersworld. Also, it would look at increasing its stake in further Fresherworld 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.
Reddy said Teamlease, which has around 1,900 clients across 6,000 locations in India, had hired more than 16 lakh people over the last 15 years.
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.”
Shares of TeamLease closed at Rs1,140.00, down 1.02% on the BSE while the Sensex rose 0.26% at 31,109.28.