BUSINESS
Cos find it an effective way to find like-minded talent
Talent is crucial for growth at any company. More so for a start-up where people are expected to indulge in multi-tasking, go beyond their regular selves and ideate, innovate and implement new strategies.
Start-ups are now looking to fix this problem with the M&A mechanism. Thus, start-ups with (financial) resources are strategising to acquire smaller start-ups with an intention to add on to their talent pool and enter new markets.
According to Sunil Goyal, founder, YourNest, which offers angel funding for start-ups, talent is multiple times critical in a start-up environment. “Start-up challenges are unique. The problem-solving requires courage, analysis and insights, multi-dimensional knowledge, on-the-spot decision-making abilities. A start-up team has to manage through ambiguity in the initial stages to survive and thrive.”
As per industry statistics, 2017 witnessed over 133 M&As in the tech start-up sector alone. Of these 133, 32% were mainly ‘’acqui-hires’’.
Meanwhile, Abhishek Kothari, co-founder, FlexiLoans.com believes that talent is the core ingredient for any organisation. “And start-up typically find it very difficult to have good talent until they reach a certain size, have some brand presence and can afford to pay competitive salaries. Start-ups always need people. Our primary focus is to identify and convince driven individuals to join our mission.”
FlexiLoans, says Kothari, is solving a problem of digital lending with a potential of $300 bn and “we have a team of data scientists, engineers, credit specialists, subject matter experts who carry a razor sharp focus and a hunger to invent.”
Experts say unlike other big companies, start-ups need people who are willing to go the extra mile, are excited to work with a belief in the mission and “this mind-set is hard to find and nurture.”
And any misses in hiring could result in cash burns and also affect the culture of the organisation, says Shailendra Naidu, CEO, Obopay.
Thus, acqui-hiring is one of the key ways to join forces with like-minded talent, says Kothari, who believes that it is a partnership where both parties evaluate long-term compatibility, realise that both need each other to attain full potential and share similar fundamentals.
“And bootstrapped start-ups is a ripe talent to be acqui-hired through M&As, as they have been through the finest management, entrepreneurial and leadership lessons,’’ says Goyal. He adds that in the YourNest portfolio, the start-up Golflan picked tech teams through acquisitions, while Smart Software Testing Solutions added two product lines with the acquisitions of teams.
Even FlexiLoans had recently acqui-hired a platform called CreditPeriod to ‘’accelerate our presence in the under-served supply chain financing space in India and have a great team join us to build that business,” says Kothari.
However, acqui-hiring cannot be the de facto mode of acquiring talent, say experts.
Naidu says talent crunch has more to do with finding the right talent irrespective of the size of the start-up. “While acqui-hiring might help bridge the gap, the bigger challenge would be aligning the employees brought in as a result of the M&A to the existing start-ups’s culture.”
What are the ways in which acqui-hired talent can be integrated into a start-up’s core culture?
It is important to use the acqui-hired talent for their strengths and allow them to be in the driving seat, says Kothari. “It is necessary to remember that the employees of the other company had joined them because they believed in their vision and if they do not associate with a vision in the new company, they could leave. That would defeat the entire purpose of the acqui-hiring.” At FlexiLoans, Venkatesh Viswanathan, co-founder of CreditPeriod (which they acqui-hired), heads the supply chain business.
So agrees Naidu who feels that utmost care should be taken while identifying talent from the acquired company.
“Most important is to understand the mind-set of the middle level executives who guide and align the next level of talent in the company.”
Swati Maliwal pours bottle of polluted water outside Delhi CM Atishi’s residence; WATCH
IPL 2025: R Ashwin tops CSK's wishlist as franchise plans to utilize RTM for THIS New Zealand star
'Dusre ki biwi ko cheen ke...': Arya Babbar roasts Arjun Kapoor for Singham Again villain role
'Abki baar...': AI imagines Donald Trump, Kamala Harris as Indian politicians, netizens react, WATCH
Amid bomb threats, ammunition cartridges found in Dubai-Delhi Air India flight
This Indian king, was first man to make history by marrying foreign woman during his trip to...
Mukesh Ambani's Jio once again TOPPED in global telecom industry, sets record in...
Bhai Dooj 2024: Date, shubh muhurat, significance, rituals and more
New ‘Satoshi Nakamoto’ emerges: Meet man who declares himself to be Bitcoin founder but fails to...
Watch: Former CSK star gets hit for 6 sixes in an over against England during Hong Kong Sixes
'Makes no sense': Ex-India star slams Rohit Sharma, Gautam Gambhir for absurd Sarfaraz Khan decision
World's richest man Elon Musk faces lawsuit from Ex-Twitter CEO Parag Agrawal for...
Security forces kill 2 terrorists, including a foreign national in Jammu and Kashmir
WWE Crown Jewel 2024: Full match card, timing, live streaming details - All you need to know
'Absurd and baseless': India dismisses Canadian minister's allegations against Amit Shah
IND vs NZ: Virat Kohli scripts history in Mumbai Test, becomes first player in world to...
This 51-year-old woman leaves husband to marry 30-year-old Indian security guard
Mukesh Ambani's best plan for Jio users, 200GB data, 90 days of unlimited calls at just Rs...
'Thanks for...': Abhishek Bachchan's viral statement amid divorce rumours with Aishwarya Rai
Jammu and Kashmir: 2 terrorists killed in encounter with security forces in Anantnag
21-Day Mars, Moon simulation in Ladakh
Prashant Kishor's fee for advising in one election will leave you shocked, it is Rs...
Dua Padukone Singh: Here's how Deepika Padukone, Ranveer Singh named their baby girl
Another BIG move by Mukesh Ambani, set to provide some help for debt-ridden Ghana as Reliance Jio...
J-K: Gun battle breaks out between security forces and terrorists in Srinagar's Khanyar
Noel Tata takes BIG decision at TCS after Ratan Tata's death, plans to hire...
'Will chop them up...': Mithun Chakraborty hits out at TMC’s Humayun Kabir at Kolkata rally
Delhi Air Pollution: Delhi-NCR AQI turns ‘very poor’ as city wakes up to toxic smog post-Diwali
Gautam Adani's next BIG step: Adani Power stops Bangladesh’s power supply due to...
Indian troops start patrolling Demchok sector in eastern Ladakh following India-China disengagement
Amy Jackson announces first pregnancy with husband Ed Westwick, flaunts baby bump in adorable pics
In THIS Indian village, families live with cobras, the reason is...
Hardik Pandya flaunts his special 'World Champion' ring after being retained by MI, video goes viral
Happy Govardhan Puja 2024: Top 50 WhatsApp wishes, messages, quotes for loved ones
Despite massive Diwali opening, is Singham Again paying the price for banking on huge star cast?
Shah Rukh Khan's heartfelt gesture towards jewellery store staff wins internet, watch
DNA TV Show: Public calls out celebrities’ hypocrisy on Diwali pollution
Fashion designer Rohit Bal dies at 63: Last year, he was on ventilator for heart ailments
BCCI scraps India's intra squad warm-up game ahead of Border-Gavaskar Trophy, reason revealed
Legendary fashion designer Rohit Bal dies at 63 after prolonged illness
Another terrorist attack in J-K, militants shoot two non-locals in Budgam
Meet Anish Sarkar, world's youngest FIDE-rated chess player at 3 years
Bigg Boss 18: These two wild cards to enter Salman Khan's show, get into heated argument on stage
Fact check: Did Abhishek Bahchan tie knot with Nimrat Kaur amid divorce rumours with Aishwarya Rai?
Govardhan Puja 2024: History, significance, Puja timings; why it is celebrated after Diwali?
Aishwarya Rai Bachchan Birthday: Kajol pens heartfelt wishes for actress, calls her…
Dhirubhai Ambani played matchmaker for Mukesh Ambani and Nita Ambani, he did...
Amid Diwali festivities, UPI sets new record in October with transactions over…
PM Modi's BIG attack on Congress: 'Making unreal promises is easy but...'
Singham Again box office collection day 1: Ajay Devgn film beats Kartik Aaryan-starrer, earns Rs...