One of India’s largest staffing company TeamLease said that it was investing Rs 7 crore in compliance and regulatory technology firm Avantis. This investment will help TeamLease strengthen its position in the RegTech landscape and the vast market in the Compliance and Payroll Outsourcing (CPO) segment.
The deal will enable the opportunity to integrate with various payroll providers and regulators for data processing, straight through filing and record management. While TeamLease continues the DFM (Do it for Me) services in CPO business, all tech-enabled DIY (Do it Yourself) services will be carried out by Avantis.
Avantis has expertise in governance, risk and compliance automation and has helped organisations migrate from manual and people dependent processes to automated, framework based solutions.
The transaction involves a primary investment of Rs 7 crore through CCPS (Compulsorily Convertible Preference Shares) over the next 3 years. The valuation for conversion and purchase of an additional stake by TeamLease is linked to Avantis’s future performance and meeting its milestones.
Infused funds will be primarily used to expand its business into new geographies, strengthen its existing technology and explore new forms of delivery.
Ashok Reddy, Managing Director, TeamLease Services said, “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 painless will make India a more fertile habitat for formal job creation.”
“Teamlease has the scale, experience, and credibility that truly enables our vision of Ease-of-doing Business (‘EODB’) 3.0. EODB 1.0 was the end of the license raj and EODB 2.0 was GST but EODB 3.0 will digitize the plumbing of all compliance for small and big employers. India has the opportunity to skip the evolution and move directly to a regulatory and compliance system more efficient and effective than developed countries” said Rishi Agrawal, CEO of Avantis.
The company was co-founded by Rishi Agrawal and Sandeep Agrawal. Rishi served as the head of BNY Mellon’s Center in Pune; IIT Varanasi (1999) and IIM Calcutta (2001) are his alma mater. Sandeep is a Chartered Accountant and had worked with PwC for close to a decade in Risk Advisory.
After this agreement which is expected to close before the end of September 2018, Avantis will be converted into a private limited company and will operate as a separate and independent entity.