TeamLease to acquire 30 per cent stake in Freshersworld.com

NEW DELHI: Staffing services firm TeamLease Services will acquire 30 per cent stake in job portal Freshersworld.com at an enterprise valuation of Rs 18 crore, a move that will accelerate its hiring strategy.

"Freshersworld's enterprise valuation is Rs 18 crore and we have taken 30 per cent stake towards that valuation and the acquisition of further stake in Freshersworld or complete exit is linked to future performance and key product milestones over the next three-year period," TeamLease Services executive vice-president Rituparna Chakraborty said.

Generally, enterprise value is a measure of a company's value.

The deal is structured as an all-cash tender financed with the existing cash reserves of TeamLease, a company release said, adding the transaction is subject to regulatory approvals and is expected to close before the end of July 2017.

"The purchase price implies an enterprise value of Rs 18 crore pre-money and Rs 20 crore post-money. The primary infusion of capital into the business is intended to enhance the product features and back-end technology of Freshersworld.com," the company added.

Bangalore-headquartered Freshersworld, a job site for entry level hiring in India with about 4 million unique visits every month, will continue operating as a separate and independent entity.

"The partnership with Teamlease will allow us to create a formidable force with enhanced product offerings in building databases, online job matching, assessments and background verification," Freshersworld Founder & CEO Joby Joseph said.

Commenting on the acquisition, TeamLease Services Managing Director Ashok Reddy said: "The fastest growing functional segments of India's job market over the next decade are sales, customer service and logistics and Freshersworld.com is uniquely positioned among entry level job seekers".