CIEL HR acquires talent assessment company, plans IPO in Q2 of FY24

Skilling solutions firm is in talks to acquire two other professional staffing companies before its goes public

CIEL HR Services, which provides workforce and skilling solutions, said on Thursday it had acquired talent assessment company Next Leap Career Solutions. The two sides didn’t disclose the deal value.

CIEL, which plans an initial public offering (IPO) in the second quarter of the next financial year, recorded 80 per cent year-on-year growth in revenue for the first half of FY23 reaching Rs 382.59 crore from Rs 212.25 crore a year ago. The company’s operating Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) margin stands at Rs 4.58 crore.

CIEL signed an agreement to acquire its complete equity stake in Next Leap, which operates as Jombay brand, in tranches. The acquisition will strengthen CIEL’s position as a workforce solutions company leveraging technology, the company said.

Next Leap has more than 500 clients worldwide and its solutions help managers and company leaders.

CIEL is also in talks to acquire two other professional staffing companies before the IPO. It plans to raise $10 million through private equity funding simultaneously, said K Pandiarajan, Executive Chairperson and Director of Ma Foi Group & CIEL Group.

“I take this opportunity to congratulate the team for expanding its technological capabilities that solidify the leading position of CIEL as a brand in the Indian HR services space. 80% growth in H1 and the onset of the inorganic journey shows the growth ambitions and the inherent strength of the brand,” Pandiarajan said.

“We are excited to combine forces with CIEL having a vast customer base and industry-leading geographic footprint in the HR services sector. This will help Jombay further expand its customer footprint and market penetration of its product portfolio mix across Talent Management, Capability building, Talent Identification, and Succession Planning,” said Mohit Gundecha, chief executive officer of next Leap Career Solutions (Jombay).