American staffing firm Kelly Services launches fund for HR startups in India

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Another day, another VC fund launches in India. This one is a little different, with a focus on startups disrupting recruitment and HR.

Kelly Services, an American staffing firm, is rolling out a US$10 million fund with its joint venture partner in the Asia-Pacific region, Japan-based Temp Holdings, reported the Economic Times. Known as the Temp Innovation Fund, it will specifically invest in human resources startups in India. It plans to make bets of around US$300,000 per startup.

“We are looking out for startups harnessing complex algorithms, predictive analytics, patented platforms, and digital technologies that can enhance HR and recruitment productivity,” Kelly Services’ managing director Kamal Karanth explained to ET. Kamal is also the managing director of Kelly Outsourcing and Consulting Group in India.

Kelly Services and Temp Holdings’ joint venture, TS Kelly Asia Pacific, is headquartered in Singapore. In 2016, it launched two similar funds in Japan and the United States.

The Temp Innovation Fund will be looking at startups that work with all ends of the human resources spectrum, from hiring to paying employees.

In India, Gurgaon-based HR Fund also focuses on investing in HR startups. In the first half of 2016, it has invested US$600,000 into cloud-based HR management software PeopleStrong and participated in Knolskape’s series A round. Knolskape creates simulations to help assess and educate employees.

Last year, HR Fund pumped US$500,000 into PiQube, a startup that analyzes internet data to help employers hire better.

While none have grown as large as India’s ecommerce or fintech startups, there are a handful of human resources companies existing under the radar. ePoise has created a tool for employers to conduct pre-recorded video interviews and Venturesity lets companies create challenges online and conduct hackathons to parse potential employees.

The Temp Innovation Fund will be looking at startups that work with all ends of the human resources spectrum, from hiring to paying employees. “The company is looking for startups working with employee productivity, recruitment, HR information systems, learning management, assessments, onboarding, employee analytics and engagement, and payroll,” Kamal said.

Last week, Indian multinational oil and gas company ONGC announced a US$15 million fund specifically for oil and gas startups in the country, and in July, India’s Green House Venture Accelerator partnered with Japan and Silicon Valley-investor World Innovation Labs to announce a US$52 million fund. Ratan Tata, the chairman emeritus of Tata Sons and an active investor in India, is also planning to launch his own US$300 million fund.