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One of Japan’s largest human resources (HR) firms Mynavi Corporation has acquired a majority stake in the work-as-a-service platform Awign in an all-cash deal.

The terms of the current transaction, including the deal size, were not disclosed. However, Annanya Sarthak, Co-founder and CEO of Awign, told YourStory that it is the largest deal in the HR space in the last 20 years in India.

As a result of this deal, Awign’s early backers, including Capria, Lumis Partners, Michael & Susan Dell Foundation, Amicus Capital, and Pankaj Bansal, took “a handsome exit”. 

“We have known Mynavi for about four years and we have ensured that our objectives align…This majority stake acquisition provides us with a comfortable backing because it brings patient capital to support the company over the next 10 years and help us reach over a billion dollars of revenue by 2030,” Sarthak explained.

Patient capital in the context of a majority stake acquisition reflects a commitment to long-term value creation, strategic alignment, and sustained investment in the growth and success of the acquired company.

The Tokyo-headquartered firm, which made a minority investment in Awign in 2022, brings market exposure and access to a diverse demographic, according to the latter. The $15 million Series B round was co-led by Bertelsmann India Investments and Amicus Capital Partners.

“Our alliance with Awign is not just strategic but also a reflection of our shared commitment to making a significant social impact. The synergy between our visions, empowers us to tackle the challenges in the HR sector more effectively,” said Hidekazu Ito, Managing Director of Mynavi Solutions India, a subsidiary of Mynavi Corporation.

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Business boost

This partnership will aid Awign in developing three core areas: talent acquisition, brand visibility both in India and internationally, and technology investment for digital expansion and platform enhancement.

It will fuel the Bengaluru-based work fulfilment platform’s ambitions in onboarding and serving more global enterprise customers.

“With Mynavi coming in, we hope to acquire Japanese companies with a large operating presence in India. Our goal is to establish ourselves as an India-first company, with our workforce remaining in India for at least the next five years,” Sarthak remarked.

He believes that another improvement resulting from this transaction is governance. Awign has been operating like a Series B/Series C startup. However, with Mynavi’s involvement, the enterprise will benefit from increased governance and maturity.

Gurpreet S Khurana, Co-founder and Chief Business Officer, said the company has grown 10X over the last 3-4 years. It is hoping to achieve net profitability across the next few quarters.

It was launched by IIT alumni Sarthak, Khurana and Praveen Kumar Sah in 2016.

Awign boasts a network of more than 1.5 million gig partners and collaborates with over 175 leading enterprises. It specialises in streamlining work processes for large organisations and collaborates with them across sectors such as retail, FMCG, automotive, education, manufacturing, construction, and pharmaceuticals.

India play

Established in 1973, Mynavi has offices in Japan, the US, South Korea, Taiwan, Vietnam, the Philippines, Indonesia, Poland, and India

“Mynavi primarily operates in Japan but has expanded to Indonesia and Vietnam through acquisitions and investments. It has realised that to become the number one HR company in Asia, it needs to look beyond these markets and focus on India,” Sarthak said, adding that the country is Mynavi’s primary focus for the next ten years.

Last year, Mynavi invested in Flive Consulting (Unstop), an Indian HR startup operating a competitive recruiting and matching platform for university students and young professionals.

“At Mynavi, we are currently investing in companies that contribute to solving social issues facing India, mainly in the areas of human resources and education,” the Japanese firm had said during its initial investment in Awign.