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India – Investment in recruitment sector start-ups continues

29 January 2015

Mumbai-based recruitment start-up Aasaanjobs has raised USD 1.5 million in seed funding from technology venture capital fund IDG Ventures and US-Indian venture firm Inventus Capital Partners, reports The Times of India.

Dinesh Goel, co-founder of Aasaanjobs, commented: “We are looking at deploying the funds to expand the tech team, for product development and to ramp up our operations in Mumbai and foray into other metros.” 

"We are focused on trying to mobilise a large section of unorganised contributors to the economy, those who are largely unskilled or semi-skilled. Corporates hire annually anywhere between 500 and 1,000 employees each that we classify as `grey-collar jobs', that includes data entry operators and telemarketers," he added.

Rutvik Doshi, Director at Inventus Capital, said the entry-level job market was fragmented and operated by a clutch of intermediaries making it an opaque business model: "Every year one million people enter the country's workforce and enabling these workers find the right jobs is imperative.”

In September 2014, IDG Ventures also invested INR 20 million (USD 325,619) in Indian recruitment start-up myNoticePeriod.com. According to an Economic Times of India article published in October 2014, venture capitalists are looking to make multiple bets on India’s search and recruitment market, which is growing at a compounded annual growth rate of 20%. In the four months to October 2014, four niche recruitment start-ups secured funding.

According to research from Staffing Industry Analysts, the Indian staffing market was worth INR 266.5 billion (USD 4.3 billion) in 2012.