TeamLease acquires two HR firms in multi-million dollar deal

BENGALURU, INDIA — Indian staffing giant TeamLease Services has strengthened its position in the human capital management sector through two strategic acquisitions worth ₹427.2 million (US$4.9 million).

Major stake acquisitions

TeamLease has secured a 90% stake in TSR Darashaw for ₹175.2 million (US$2 million), with plans to acquire the remaining 10% in the upcoming financial year.

The company has simultaneously announced its intention to acquire a 30% stake in Crystal HR and Security Solutions for ₹252 million (US$2.9 million), with future plans to obtain the remaining 70% in multiple tranches.

Enhanced service capabilities

TSR Darashaw brings over four decades of expertise in outsourcing services, specializing in customized payroll processing solutions for multi-location corporate clients. With an operating profit margin of 15% and revenue of ₹9.22 Crores (US$1 million) in FY24, TSR Darashaw has established itself as a trusted name in the industry.

Crystal HR, through its flagship product Wallet HR, serves over 300,000 users across multiple countries. The company has demonstrated strong financial performance with a 15% operating profit margin and revenue of ₹10.50 Crores (US$1.2 million) in FY24.

“Our acquisition of TSR Darashaw’s payroll processing business and Crystal HR provides crucial infrastructure for our vision of becoming India’s largest Human Capital Management service provider,” said Ashok Reddy, Managing Director & CEO of TeamLease Services.

Future outlook and impact

The combined entity will manage an impressive 815,000 payroll records, serving over 450 corporate clients.

TeamLease, which has hired 2.3 million people over 23 years, currently serves 3,900 employers through its comprehensive solutions spanning employment, employability, and e-workforce services.

Darashaw Keki Mehta, Director of TSR Darashaw HR Services, expressed optimism about the merger: “Joining forces with TeamLease allows us to leverage their inherent domain capabilities apart from their top-notch talent to deliver even greater value to our clients.”

Crystal HR’s founder and CEO, R.S. Raman added, “Crystal HR aligns seamlessly with TeamLease’s strategic vision of strengthening client partnerships by offering innovative, differentiated business solutions and delivering talent at scale in the markets we both serve.”