Zoho, a cloud company, was when it had reported its fiscal for FY17. While the company’s FY18 financials are still unreported, it has now made headlines by making a sensible acquisition.
The Sridhar Vembu led company has acquired a hiring automation startup ePoise Systems.
This deal makes sense for both the companies when we look in detail at what they do. Zoho provides offices with a suite of SaaS-based applications. ePoise, on the other hand, was started by Sachin Agarwal and Bishan Singh to ease out the process of hiring in offices.
The product ePoise offer automatically does the initial screening of job applications on the basis of requirements of a specific role until the process reaches a video interview.
This significantly helps companies that generally receive a large number of applications or opt for high volume recruitment.
The product hence fits right into the business model of Zoho that focuses on tech solutions that can be provided to offices. With this acquisition, the hiring process automation will become a part of services that a customer company can expect from Zoho.
While the deal amount is undisclosed, the value addition for both firms is apparent.
For ePoise the deal brings the opportunity for its product to reach out to a global market and reach a higher scale, as the founders told ET.
Not to forget, Zoho saw a downfall in its financial performance in FY17. Its revenue saw a minor 12.8 per cent increase to Rs 1982.44 crore, while the profits shrunk by 46.6 per cent to Rs 285.37 crore.