Mumbai-based fintech startup Zeta, which offers digital employee solutions, has made an undisclosed equity investment in cloud services provider ZingHR, which is operated by Cnergyis Infotech India Pvt. Ltd, the firm said in a statement.
Zeta, which is operated by Better World Technology Pvt. Ltd, picked up less than 9% stake in ZingHR, said the firm’s spokesperson.
The deal is worth Rs 5-10 crore, said a company official who did not wish to be named.
With the latest funding, ZingHR, which is backed by Accel Partners, Mumbai Angels and Triton, will expand operations and build technology, it said.
ZingHR—which provides end-to-end employee lifecycle management services—will now offer Zeta’s digital employee benefits solutions to its customers.
“Since Zeta’s inception, we have added 1,000 corporate clients. We see a lot of synergies with ZingHR to expand the reach of digitised solutions across the globe," said Bhavin Turakhia, CEO and co-founder, Zeta.
ZingHR leverages technologies such as machine learning in recruitment, HR analytics, geo-fencing, geo-tagging and Aadhaar-based digital on-boarding. It claims to serve over 6 lakh employees through 400 clients across India, the Middle East and Singapore.
ZingHR’s clients include Svatantra Finance, DHL, Shriram Housing Finance and Sterling Resorts.
Zeta was founded in April 2015 by Directi Group's Bhavin Turakhia and Ramki Gaddipati.
The company deals with digitised employee benefits, rewards and expense management. Last year, Zeta launched a cloud-based suite called Optima that offers digitised meal vouchers, fuel and travel card, medical reimbursements and gift card, among others. The firm claims to serve over 3.5 lakh users.
The HR tech segment has elicited a lot of investor interest lately. Earlier this month, enterprise human resources management platform Darwinbox Digital Solutions Pvt. Ltd secured $4 million in its second external round of funding from Lightspeed India Partners and others.
In February, expense management firm Fyle Technologies raised $400,000 (Rs. 2.67 crore) in its seed round from early stage venture firm Pravega Ventures, Beenext, redBus co-founder Phanindra Sama, Zivame co-founder Richa Kar, and Qubole co-founder Joydeep Sen Sarma.
In December, HR analytics platform inFeedo raised $200,000 in a funding round led by existing investors Dheeraj Jain, managing partner at UK-based hedge fund Redcliffe Capital and Anupam Mittal, founder and chief executive of People Group.