Japan-based HR firm Mynavi acquires majority stake in HRtech startup Awign

Japanese human resources company Mynavi Corporation has acquired a strategic majority stake in the Indian HRtech startup Awign. 

This all-cash transaction marks a significant step for both companies. Awign aims to expand its global customer base, and Mynavi aims to strengthen its presence in India.

Awign, a work-as-a-service platform based in Bengaluru, specializes in comprehensive business solutions, including discovery, deployment, and payroll management.

Impact on Awign's growth and operations

This partnership is expected to enhance Awign's capabilities in three key areas: talent acquisition, increasing brand visibility globally, and investing in technology for digital expansion. Annanya Sarthak, co-founder of Awign, emphasized that the deal will help target Japanese companies operating in India, enhancing their service reach. He stated, "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."

Financial movements and future projections

The acquisition follows Awign’s recent financial activities, including a $15 million Series B funding round and a successful employee stock option (ESOP) buyback program.

Gurpreet Singh Khurana, Co-founder and Chief Business Officer, highlighted the company's growth, saying, "The company has grown 10X over the last 3-4 years. It is hoping to achieve net profitability across the next few quarters."

Departure of early investors

As a result of the acquisition, several of Awign’s early investors, including Capria, Lumis, MSDF, Amicus Capital, and Pankaj Bansal, will be exiting the company.

Established in 1973 and headquartered in Japan, Mynavi has expanded its operations to multiple countries in Asia and beyond. The acquisition of Awign is part of Mynavi's broader strategy to become the leading HR company in Asia.

Sarthak added, "Mynavi primarily operates in Japan but has expanded to Indonesia and Vietnam through acquisitions and investments. It has realized that to become the number one HR company in Asia, it needs to look beyond these markets and focus on India." Last year, Mynavi also invested in Flive Consulting (Unstop), indicating a strong interest in the Indian HR and education sectors.