TeamLease Services Limited, one of India’s largest staffing companies, and Avantis Softech, India's leading Compliance and Regulatory Technology Company has announced the signing of a definitive agreement under which TeamLease will invest Rs7cr in Avantis.
The transaction remains subject to customary closing conditions and regulatory approvals and 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.
Avantis has deep expertise in Governance, Risk and Compliance Automation. It has helped hundreds of organisations migrate from manual and people dependent processes to automated, framework based solutions.
It has credibility across large enterprises and SMEs with implementations across 29 states and 7 Union Territories in India with quick and easy on-boarding and a Mobile App based Compliance tracking and management.
Avantis’s SAAS (Software as a Service) Platform covers over 1200 Acts and over 55,000 compliances in India. Avantis’s strong compliance assessment and research capabilities leverage cutting edge technologies such as Al, ML and OCR.
The transaction involves a primary investment of Rs7cr through CCPS (Compulsorily Convertible Preference Shares) over the next 3 years. The valuation for conversion and purchase of additional stake by TeamLease is linked to Avantis’s future performance and meeting its milestones.
Announcing the signing, Ashok Reddy, Managing Director, TeamLease Services said, ”Our partnership with Avantis provides important infrastructure for our vision of Paperless, Presence/ess and Cash/ess compliance for India’s big and small entrepreneurial ecosystem. Making compliance painless will make India a more fertile habitat forformal 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.
Team Lease Services ended at Rs3,815 apiece up by Rs22.5 or 0.59% on Sensex.