On Thursday, it was reported thatGreytip, a cloud-based HR and payroll solution, has raised Rs 35 crore in Series B funding from New Enterprise Associates (NEA) and Blume Ventures. According to the company, the funding will be used primarily to enhance the existing product and reach out to a larger segment of the market.
As a part of the deal, Tarun Sharma, Managing Director at NEA, and Karthik Reddy, Managing Partner at Blume Ventures, will join the company’s board.
Founded in 1994, by Girish Rowjee and Sayeed Anjum, Greytip provides complete lifecycle management of an employee including management of his or her information, work flow, leave, attendance , headcount analysis, and payroll processing, as a solution on its platform. Focussing on small and medium enterprises, the company states to be helping only the technology side of the business, through its product greytHR.
It had earlier raised an undisclosed amount of funding in 2014 from Blume Ventures.
According to the report, the company has 3,000 paying customers at present with another 600 using it on a trial basis. It also has its customer base spread across 60 cities and aims to get 10,000 organisations to use its platform in the next 18 months. Interestingly, in 2014, the company was reported to have 2,500 clients across India, Malaysia, the UAE and Oman, while managing records of close to five lakh employees on a daily basis. Currently, the company has offices in Bengaluru, Delhi NCR, Chennai, Mumbai, Pune, Hyderabad and Dubai.
Speaking about the investment, Tarun Sharma, said,
What impressed us was that GreytHR team has demonstrated their ability to achieve tech leadership and gain meaningful scale in the SaaS-based HR and payroll market in India in a short span of time.
India has over 500 SaaS startups, collectively earning a revenue of $600 million. This is because of the cost advantage that Indian SaaS companies offer to the global markets.
According to a report released by Google and early stage investor Accel Partner, SaaS companies in India are expected to reach $10 billion revenue mark by 2025. The report states that the SaaS products market in India is expected to cross $50 billion in the next ten years, owing to a massive demand from small and medium businesses.
There are bigger players like Noida-based RateGain and Gurgaon-based Knowlarity which through different SaaS models have an active presence in the global markets.