HSBC invests in MeritTrac Services

MeritTrac Services, a Bangalore-based firm focussing on the skills assessment and pre-recruitment process outsourcing space, has raised Rs 16.5 crore from HAV2 (Mauritius) Limited. This fund advised by HSBC Private Equity Technology (Asia) Limited, will be used to finance MeritTrac's next level of growth.

This five year-old firm has a topline of $2 million and is looking at doubling every year and according to the company this investment should hold them good for the next three years.

The investment from HSBC is the second one for MeritTrac after the initial $100,000 funding from angel investors.

The company has till date carried out over 800,000 assessments for over 100 marquee clients. Recently, it announced plans to target verticals beyond IT and BPO.

"We are proud and happy to be associated with HSBC Private Equity. The investment validates the promise that the space holds and the immense potential that the Indian market presents. The funding will be used to accelerate our penetration into verticals beyond IT and BPO and also to consolidate and build on our leadership in the Indian assessments space," said Madan Padaki, co-founder & Director, MeritTrac Services.

Commented Raymond Y H Leung, Director of HSBC Private Equity, "The success of MeritTrac in the past few years and its strong growth flows from its model of targetting key niches in the HR outsourcing value chain. We look forward to building on our relationship with the MeritTrac team in this exciting phase of the company's development".

Avendus Advisors was the Investment Banker for MeritTrac on this transaction.