London-based fintech and HRtech company Salaryfits has raised $5 Mn from Brazilian VC fund Confrapar to increase its presence in India, besides Latin America, Europe and Asia. Salaryfits has also partnered with an unnamed HRtech startup as well as fintech startup Wishfin in In India.
Talking about its expansion plans in India, Salaryfits head of operations in India, Guilherme Mota, announced that it has also formulated a strategic partnership with a Gurugram-based HRTech player to bring its technology and concept to over a million employees.One the other hand, credit marketplace Wishfin will use Salaryfits technology to launch innovative lending products from 2020.
Wishfin CEO Rishi Mehra said, “SalaryFits technology coupled with Wishfin’s strong underwriting and operational efficiencies will create a compelling value proposition for the customer.”
Salaryfits, which entered India three years ago, has chosen to expand operations in the country due to the large unbanked population in the country. Along with that, the country also has a growing number of “new to credit” (NTC) customers, who are digital-savvy and young workers entering the financial market. The company was founded in 2015 by Renato Araujo.
“SalaryFits brings a successful model that promotes financial inclusion and fairer access to financial products. Financial benefits and empowerment of employees’ through financial well-being solutions is still at a very nascent stage in India, and we are happy to bring forward our thought leadership in the country,” said Mota.
In 2016, Salaryfits had received a grant of $1.3 Mn (EUR 1.25 Mn) from Portugal2020 and has a presence in Europe, Brazil and India. Salaryfits’ core audience is individuals that have just entered the financial market, who have been ignored by big banks that are still reliant on “inaccurate” risk assessment tools along with high levels of bureaucracy in the financial system. Salaryfits claims that it can bridge the gap between these salaried individuals and financial institutions.
Startups such as Talent Litmus, Quodeck, Hush, Vyre and others are competing with Salaryfits in the HRtech market in India. According to DataLabs by Inc42, the HRtech sector startups raked in $504.8 Mn funding in 2018, registering a 207% rise from $164.2 Mn funding in 2014.
Gamification for job assessment is not just a fad. According to PwC CEO Survey 2018 report, over 91% of business leaders believe that behavioural skills are as important as technical skills. Within HRtech, the assessment services market is projected to cross $750 Mn by 2021 in India, states Research and Markets report of May 2018.