PagarBook, an India-based payroll and staff management app, is set to acquire Indonesia-based Vara for US$5.6 million in an all-stock deal, Entrackr reported, citing a Registrar of Companies filing.
Both companies were participants in Surge, the accelerator program of Sequoia Capital India, though they were in different cohorts.
Last year, Vara had raised US$4.8 million in seed funding from Go Ventures, the investment arm of Gojek, as well as other investors. It was then valued at US$15.5 million, according to Entrackr, which translates into a stress deal for the startup.
The Indonesia-based staff management app caters to SMEs in labor-intensive sectors such as F&B and construction. It was founded in 2020 by former Grab executive Vidush Mahansaria and Wharton School graduate Abhinav Karale.
Meanwhile, Sequoia-backed PagarBook last raised funding in 2021 at a US$100 million valuation. It is currently seeking to raise fresh funds at a valuation of US$300 million. The company is one of 100 fintech firms in India whose bank accounts were recently frozen by the Enforcement Directorate.
See also: Indian unicorns exit Indonesia, raising questions over expansion strategy
Editing by Lorenzo Kyle Subido
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