NEW DELHI: The HR Fund, a human resources-focused private investment company, has invested $500,000 (about Rs 3.2 crore) in PiQube, a Chennai-based startup assisting in hiring.
The investment, which will be made in two tranches, is the third transaction for the HR Fund, which has a Rs 50 crore corpus.
It previously invested in human resources outsourcing venture PeopleStrong and HRfocussed knowledge and media platform People Matters in 2012.
"Recruitment is a huge chunk of the human resources sector. We expect PiQube to, in a few years, be the default platform and attack the market, which is really yet to adopt technology so far," said Utkarsh Joshi, principal at HR Fund.
Founded in 2012 by Jayadev Mahalingam, an alumnus of the University of Madras, PiQube uses data-driven algorithms and undertakes socio-metric profiling to assist recruiters in finding candidates with the right skills for positions across sectors. This is the first institutional round of funding for PiQube, which was selected for online payment giant PayPal's Start Tank incubation programme last year.
Gurgaon-based HR Fund, which typically invests between $500,000 and $1 million, plans to make at least two more investments in the current financial year, according to Joshi.
"We're looking to make between 8-10 investments from the first fund, and are considering investment opportunities in the human resources learning and development, as well as in the HR analytics space," he said.
The fund, which has an investment holding period of 3-5 years, is backed by high networth individuals, largely from the corporate sector.
They include Pratik Kumar, chief executive officer of Wipro Infrastructure Engineering; Arvind Agrawal, president, corporate development and group HR in the RPG Group; NS Rajan, group chief human resources officer and member of the group executive council of Tata Sons.