Delhi startup is using AI to fix challenges in the hiring process
TraqCheck uses AI technology and automation to streamline the background verification process. It currently has more than 150 clients, including Reliance Retail, Lenskart, Motherson Sumi, Hero Cycles, and Bajaj Capital, among others.
At a time when security concerns and cyber threats are plaguing organisations, employee background verification has become more important than ever.
TraqCheck, a Delhi-based startup launched in 2021, aims to make employee background verification more efficient and cost-effective.
Founded by Jaibir Nihal Singh and his childhood friends Armaan Mehta and Rishabh Jain, the startup uses AI for the background verification of employees and helps organisations onboard the right people. It uses technology and automation to increase speed, enhance efficiency, reduce human error, and help companies maintain compliance to streamline the background verification process.
“Despite initial feedback from several industry experts suggesting the infeasibility of automating background checks in India, we persisted in building our product and discovered that it was indeed viable. This realisation motivated us to focus on developing the technology and advancing ahead,” Jaibir Nihal Singh, Co-founder of TraqCheck, tells YourStory.
The founders initially invested Rs 6 lakh from personal savings to bootstrap the startup. Currently, the team has about 20 employees.
Automating verification solution
TraqCheck is an ‘Application Programming Interface (API)-first product that is customisable and can be integrated with any Human Resource System (HRMS) with just a few lines of code.
Singh explains that after getting information about the candidate, it runs a background verification with the data gathered. It then produces results that can be viewed on the dashboard or the client’s HRMS system.
The product authenticates and aggregates an individual’s historical information, including their criminal record, education history, previous employment, identity, address, and psychometric results, with meticulous accuracy and a fast turnaround time.
It also includes a myriad of bots and algorithms such as the Identity Matching Algorithm, the Employment Verification Bot, and the Forgery Detection Algorithm, amalgamated with an end-to-end automated system, providing organisations with complete background check solutions.
Furthermore, with the Positive Adjudication Matrix, TraqCheck’s algorithms can recognise the significant discrepancies that can modernise the adjudication process.
“Our streamlined approach is designed to minimise any additional workload for HR teams, providing them with a convenient and seamless experience, while their advanced system handles the entire background verification process expeditiously,” Singh asserts.
The startup has partnered with to build various features such as categorising criminal records, computer vision for current address verification, and more.
Business model
TraqCheck does not charge for software leasing, and charges per background check. Its cost varies from client to client, and is decided by the organisation’s monthly hiring volume. The average charge starts at Rs 1,000 per person.
For instance, if a company requests 500 background checks in a month, its billing will be based on the actual number of verifications conducted.
It has more than 150 clients, including , , Motherson Sumi, Hero Cycles, Bajaj Capital, Cholamandalam Finance, and , among others. Additionally, it onboards 4-5 new companies every month.
“The background verification market is experiencing a significant surge. With a number of international firms looking to extend their footprint in India, background checks will automatically become an important requirement for them to fulfil their hiring needs,” Singh says.
The startup generated a revenue of Rs 2.6 crore in FY22. It aims to generate over Rs 8 crore in the current year, more than Rs 20 crore the following year, and Rs 100 crore within the next 4 to 5 years.
Discreet data policy
Majority of the background checks are completed instantly and are continuously updated in real-time and include ID, criminal, address, psychometric, credit, and EML-based employment verifications.
“However, in cases where clients request physical verification from universities, the process can take 3-5 days to complete. In general, no complete background check, which includes physical components, takes longer than 7 days,” says Singh.
“We prioritise data privacy and have established strict protocols for data protection. Our contracts with clients require explicit consent for data usage in background verifications,” he adds.
Similarly, TraqCheck obtains candidate consent before initiating any verification process. It also encrypts and stores clients' data on secure AWS cloud servers, where they can opt to have their data erased after the background verification process.
Way ahead
According to Allied Market Research, the global employment screening services market was valued at $4.95 billion in 2020 and is projected to reach $9.92 billion by 2028, growing at a CAGR of 9.2% from 2021 to 2028.
TraqCheck competes with San Francisco-based Check.
"Most background verification companies in India provide a service, whereas we are a product. A service is not scalable and requires a large workforce, whereas a product has no scaling limitations. As an AI product, we provide timely results, accuracy, and cost-effectiveness," Singh adds.
The startup plans to partner with job portals in the coming months. It also plans to expand its workforce in the next three to four years.
Edited by Megha Reddy
