India's PE-backed TeamLease files for IPO
Indian staffing services company TeamLease has filed for an IPO, providing a partial exit for backers Gaja Capital and ICICI Venture.
The company is hoping to raise INR1.5 billion ($22.6 million) through the offer of an undisclosed amount of fresh shares, according to a filing. In addition, ICICI and Gaja will offer about 1.5 million shares each, and promoter HR Offshoring Ventures will offer about 153,000 shares. The share price for the additional shares has not been disclosed.
TeamLease plans to use most of the proceeds for working capital, with a smaller amount going to acquisitions and other strategic initiatives and to upgrading its IT infrastructure.
Founded in 2000 as India Life Chakravarti Actuarial Services, TeamLease is a provider of recruitment and human resources services to Indian companies across a range of industries. The company helps to recruit and train employees for both temporary and long-term staffing needs, and also offers consulting services for labor law compliance.
As of July 2015, it had more than 99,000 temporary employees and over 1,200 corporate clients. With an estimated 2 million temporary employees working in India, this gives TeamLease 5% of the market.
Gaja committed INR500 million to TeamLease in 2009; it later invested another INR250 million in 2011. For that round it was joined by ICICI, which committed INR750 million.
TeamLease expects the recruiting and staffing industries to play a leading role in helping Indians transition into formal employment; currently only 10% of the labor force is formally employed, according to CRISIL Research. It projects flexible staffing to see compound annual growth of 20-25% until 2019. TeamLease is one of the leading Indian companies in this space, with its primary competition coming from multinationals such as Randstad and Adecco.
The company reported net revenue of INR20.1 billion for the year ended March, 2015, up from INR15.3 billion the year before. Over the same period, profit rose from INR196 million to INR341 million.
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