In the constantly evolving start-up ecosystem, the HR tech space is gaining traction in a very short period.
Often called the dark horse, HR tech start-ups are bringing a radical change in the HR practices in the B2B space.
Identifying an ever-increasing demand for an advanced technological platform that would meet the growing Human Resources (HR) needs of a company, a group of engineers and management scholars embarked on an entrepreneurial journey in 2015.
And in less than two years, their company has roped in investments from the leading names like Endiya Partners, Mohandas Pai’s 3one4 Capital, StartupXseed Ventures and Lightspeed India Partners.
“World’s largest enterprises are increasingly thinking of HR platforms not just as systems of record but as systems of intelligence, to propel their human resource agenda,” said Jayant Paleti, Co-founder, Darwinbox.
Savouring Success Too Soon
With an easy-to-use interface, the cloud-based, end-to-end HRM platform, Darwinbox, has captured a large customer base — Paytm, Nivea, Godrej, CDPL, Delhivery and Swiggy — being some of the marquee clients it has worked with.
In an interview with Entrepreneur India, Paleti said their undivided belief in the business model and continuous investment in the core technologies helped them climb the growth ladder in an unexpectedly less amount time.
“We believe in our model to the core. We aim to invest in Big Data and Machine Learning-enabled research in Human Resource Management and psychology to maximize the value or utility of our services while staying relevant. This way, we can also stay ahead in the competition, based on the investment we have raised so far.”
Changing HR Practices
Shrugging off an expensive people-management model, a good number of companies are adopting this new entrant in the market to cut HR expenses. Darwinbox’s automated HR processes cover the life cycle of each and every employee and take care of anything and everything related to employee management.
From managing recruitment and attendance of employees to handling employee funds like payroll and reimbursements, the venture runs everything in one, integrated, and application suite. The company found its initial success in the logistics industry, added Paleti.
Experts have agreed to the fact that HR technologies can cut people management costs substantially and these should be adopted by the Indian industries.
IT industry veteran TV Mohandas Pai pegged the annual cost reduction of people management at 25-30%, said by a media report.
Paleti believes a product’s worth in the market actually helps in raising investment.
“A great product, value proposition, and traction in the market can lead any start-up’s way towards investment,” he added.
Overcoming some of the biggest hurdles like a conventional company mindset and incapability to adopt new technologies in Human Resources sector, Darwinbox led a revolution with its Human Resource Management System (HRMS) platform.