Apax Digital Fund 2 invests in greytHR

Apax Digital Fund II has made a strategic investment in greytHR, an HR and payroll software solutions provider, marking the fund’s eighth investment and first in India.

The company will use the funds to leverage growth opportunities in the cloud-based HR software market. The investment amount was not specified.

“The investment will enable greytHR to further enhance its product portfolio, including adding more strategic HR modules focused on recruitment and talent management, as well as support the company in accelerating growth and expanding into new customer segments,” greytHR said in a statement Monday.

greytHR offers cloud-based solutions to automate and streamline employee management. It claims to have over 23,000 organisations as clients and 2.3 million users across India and over 25 countries.

As part of the transaction, Mark Beith, a partner at Apax Digital, and Shashwat Shukla, vice president of Apax Digital, will join greytHR’s board of directors. The deal is expected to close in Q3. Ambit Capital acted as the financial advisor to greytHR.

“This funding accelerates our plans to enhance customer experience and our R&D efforts by upskilling our employees and expanding our business,” said Sayeed Anjum, co-founder and CTO of greytHR. “We have already started adding and building out AI-enabled modules and other value-added services.”

Apax Digital Fund specialises in growth equity and growth buyout investments in enterprise software, data, and technology-enabled services companies worldwide. The private equity firm has raised and advised funds totalling more than $77 billion in commitments.

In March, Apax Partners appointed Leo Puri as advisor to Apax and chairman of Apax India.

Established in 2006, Apax India has facilitated investments for Apax Funds in companies including Azentio Software, Infogain, Global Logic, Zensar, IBS Software, Fractal Analytics, Healthium, and Apollo Hospitals. Apax Funds has invested $2.3 billion across nine deals in India.