B2B Marketplace IndiaMART announced on March 3 that it has made an investment of approximately Rs 17.01 crore in Zimyo Consulting Private Limited. IndiaMART has stated that the investment is in line with the company’s long-term objective of offering various Software as a Service (SAAS) based solutions for businesses.
Founded in January 2018 by Kumar Mayank and Ajay Kadyan, Zimyo is an SMB-focused startup that offers SaaS-based human resource management software for its clients. The platform allows users to carry out HR processes like recruitment and onboarding, payroll management, performance management, and time & attendance management.
It also includes employee benefits modules which offers salary advance, personal loan and health & term insurance to employees. Zimyo competes with players like greytHR, Zoho, BambooHR, among others.
The final aggregate shareholding of IndiaMART, post this investment, in Zimyo would be 10 per cent on a fully diluted basis. IndiaMART has subscribed to 1,870 Series A Compulsorily Convertible Preference Shares (CCPS) of face value of Rs. 10 per CCPS at a premium of Rs 86,306, aggregating to approximately Rs. 16.14 crores. It has also purchased 100 equity shares of face value of Rs. 10 per equity share at a premium of Rs. 86,306 aggregating to approximately Rs. 0.86 Crores.
Dinesh Agarwal, founder, and CEO of IndiaMART, explained that the COVID-19 pandemic has accelerated the adoption of SaaS based HR Management solutions by new age as well as traditional businesses.
“This investment is another step towards IndiaMART’s long term vision of providing a holistic ecosystem for all business needs, and we are excited to partner with the Zimyo team for their next phase of growth,” said Agarwal.