US-headquartered recruitment firm Kelly Services has launched a Rs 670m ($10m) India-based strategic investment fund in association with its Japan-based peer Temp Holdings, the Economic Times reported yesterday.
The vehicle, named Temp Innovation Fund, will focus on early-stage startups operating in the human resources (HR) sector. Each startup will benefit from a minimum commitment of Rs 20m.
The fund will particularly seek out companies developing technologies around productivity, recruitment, HR information systems, analytics, onboarding, assessments, employee engagement and payroll.
India’s human resources sector is valued at approximately $6bn, according to Kamal Karanth, Kelly Services India’s managing director.
Temp Holdings, which is Kelly Services’ joint venture partner for the Asia Pacific region, launched similar funds in Japan and in the US earlier this year.
Karanth told ET: “VCs in India are concentrating on internet, fintech, healthcare, edutech and cleantech startups. The Temp Innovation Fund will invest in HR startups which will make people-related interfaces and transactions more productive.”