The invested fund of Rs 7 Crore will be used to expand business and strengthen existing technology.
BSE-listed recruitment services firm, TeamLease Services, has decided to buy a stake in the compliance & regulatory technology company, Avantis Softech.
The investment of Rs 7 Crore will be primarily used to expand its business into new geographies, strengthen its existing technology and explore new forms of delivery. The valuation for conversion and purchase of additional stake by TeamLease will be linked to Avantis’ future performance and fulfillment of its milestones.
Avantis has been into the compliance & payroll outsourcing (CPO) segment and helps organisations migrate from manual and people-dependent processes to automated, framework-based solutions. Its SAAS (Software as a Service) platform covers over 1200 Acts and more than 55,000 compliances in India.
Avantis’ compliance platform and technology plug-ins / interfaces will help TeamLease strengthen its position in the regulatory technology or RegTech landscape. While TeamLease continues the DFM (Do it for Me) services in the CPO business, all tech-enabled DIY (Do it Yourself) services will be carried out by Avantis.
The two companies have entered a definitive agreement and are waiting for regulatory approval, which is expected before September.
Avantis will be converted into a private limited company and will operate as a separate and independent entity.
Ashok Reddy, managing director, TeamLease Services, says, “Our partnership with Avantis provides important infrastructure for our vision of paperless, presenceless and cashless compliance for India’s big and small entrepreneurial ecosystem. Making compliance hassle-free will make India a more fertile habitat for formal job creation.”