Zeta acquires stake in PeopleStrong HR Services

Mumbai-based digital payments and meal vouchers company Zeta has invested in Gurugram-based PeopleStrong HR Services for a minority stake.

Promoted by serial entrepreneur Bhavin Turakhia, Zeta did not disclose the quantum of the investment, reports ET.

Zeta currently has over 1,500 corporates, who use their digital payment solutions for their employees and manages 3 million transactions per month through their platform. It offers a range of solutions, including digitised employee tax benefits, digital gifting platform and cashless cafeteria solutions for workplaces.

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According to Turakhiya, Zeta's products will be available as an integrated offering in PeopleStrong's HR, MS and payroll systems, which has amassed 500,000 users on its platform.

Following the deal, Zeta and PeopleStrong will jointly launch a human resources-focused mobile app later this week.

Turakiya and Ramki Gaddipati founded the company in 2015. In June last year, the payment firm had invested Rs 5-10 crore to buy a minority stake in human resources solutions entity ZingHR to reach out to the employees that ZingHR serves through its corporate clients.

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In October, last year Zeta tied up with Kotak Mahindra, after launching its new feature Paymint for corporate payment solutions.

On the other side PeopleStrong, which was founded in 2006 by Pankaj Bansal and Shelly Singh has received its second investment in less than a year. The firm raised Rs 400 crore from private equity firm Multiples Alternate Asset Management and HDFC in lieu of 70% stake.

PeopleStrong claims to have an employee base of about 1,000, and an order book of about Rs 550 crore. The company counts major brands such as Jubilant Foodworks, Domino's Pizza, Subway, Cipla and Vistara among its clients.