GrownOut raises funds from Matrix Partners
1 min read 08 Oct 2014, 02:13 PM ISTGrownOut is looking to use the funds for deepening its analytics expertise, product development and growing its business
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Mumbai: GrownOut Solutions Pvt. Ltd, a Gurgaon-based online referral hiring company, announced on Wednesday that it has raised its first round of funding (Series A) from Matrix Partners.
OutBox Ventures, an early-stage (seed) fund and an investor in the company, also participated in the current round of funding. The amount is estimated to be equal to a typical Series A round funding, which would be $3-6 million.
The company is looking to use the funds for deepening its analytics expertise, product development and growing its business. Co-founder Sumit Gupta said in a statement that they are building a referral hiring solution to make recruiting more efficient and cost-effective.
“The recruitment market in India is large and has been served by staffing agencies, job-boards and career sites. Companies still struggle with a barrage of unsuitable resumes, long recruitment cycles and candidates that are a poor-fit with company culture. Referral hiring provides recruitment results in shorter hiring cycles, lower hiring costs and higher employee retention," said Tarun Davda, director, Matrix Partners India, in a statement on Wednesday.
Other start-ups in the space include myNoticePeriod.com that has raised over ₹ 2 crore in a seed round led by IDG Ventures India. TalView.com, an online company that provides video technology in the area of recruitment, received investment from Mayfield Fund in July this year.
According to a report based on a Salary and Employment Forecast by Michael Page, a British recruitment company, 68% of surveyed employers in India use social media as part of the recruitment process, with LinkedIn the preferred platform. Around 51% of employers surveyed expect attrition in the coming year, while 70% plan to expand their team over this time frame.
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