The HRFund, a human resources focused private investment company, is planning to invest in up to three firms, operating in HR technology and recruitment space, in the current fiscal.
“We are basically looking to make three investments in this financial year. Mostly we are looking at HR technology, recruitment space, the HR analytical space and learning and development space,” the HR Fund Principal Utkarsh Joshi said.
The companies that the fund is focusing on are in post “seed” and “pre-VC” stage and so the range of investment will up to USD 500,000 to USD 1 million (Rs 3 crore to Rs 6 crore) per transaction.
Joshi further said that the HRFund is expected to invest up to Rs 18 crore in these three deals.
With a corpus of Rs 50 crore, the HRFund, which has a total of 23 investors, is looking at funding start-ups specifically in the recruitment, learning and development and HR Analytics space.
The fund’s existing portfolio includes PeopleStrong HR Services and People Matters. While People Strong is a human resource outsourcing and HR technology company, People Matters is an HR knowledge and media platform.
According to IDC (International Data Corporation), the HR management application industry is expected to grow up from USD 10 billion in 2013 to USD 13.5 billion in 2017.
The Indian HR market has seen VC/PE transactions worth more than USD 160 million in the last four years.