In a significant development for the HR technology landscape, the private equity arm of global investment bank Goldman Sachs has acquired a majority stake in PeopleStrong, a Gurgaon-based HR software-as-a-service company, for approximately $130 million. The deal marks one of the largest private equity buyouts in India’s SaaS sector this year.
Transaction Details
Goldman Sachs acquired Multiples Private Equity’s 84% stake in PeopleStrong, along with a portion of the employee stock option (Esop) pool, according to people familiar with the matter.
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Multiples PE initially invested in PeopleStrong in 2017 through a mix of primary and secondary capital totaling around Rs 400 crore, generating nearly 3x returns over its eight-year investment horizon.
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Other stakeholders include founder Pankaj Bansal (2% stake) and early investors and angels.
This marks Goldman Sachs’ latest move into the HR tech domain, reinforcing the growing interest of private equity firms in enterprise SaaS platforms offering scalable, AI-driven solutions.
Company Background and Financials
Founded in 2005 by Pankaj Bansal, PeopleStrong serves over 500 enterprise clients across India and international markets, including Southeast Asia, the Middle East, Australia, and New Zealand.
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In FY24, the company reported Rs 274.5 crore in revenue, slightly up from Rs 271.7 crore in FY23.
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Notably, it swung from an Rs 84 crore net loss in FY23 to a Rs 57 crore net profit in FY24, driven by effective cost containment.
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During the fiscal year, the company also divested its remote proctoring business Wheebox to Educational Testing Service (ETS).
CEO Statement and Future Outlook
In an official statement, Sandeep Chaudhary, CEO of PeopleStrong, emphasized the company’s commitment to sustainable, profitable growth:
“We are proud to stand out today as one of the few EBITDA-positive SaaS companies with a leading market position. We are excited to join forces with Goldman Sachs.”
He added that the partnership will enable PeopleStrong to accelerate innovation and strengthen its operational capabilities, particularly in the areas of AI and global SaaS expansion.
Sector-Wide Momentum in HR SaaS
The acquisition follows closely on the heels of other major PE investments in the HR tech space:
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Everstone Capital’s $200M acquisition of Wingify in January 2025
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Darwinbox’s $140M funding round co-led by KKR and Partners Group in March
These developments reflect a broader trend: private equity firms are increasingly betting on scalable, AI-enhanced SaaS solutions within HR and workforce management.
Goldman Sachs’ acquisition of PeopleStrong underscores rising global investor confidence in India’s SaaS capabilities and the strategic importance of HR tech in a digitized, remote-first workplace. As PeopleStrong prepares for its next growth phase, the partnership with Goldman Sachs may prove instrumental in cementing its leadership position across Asia-Pacific markets.
Source – HR Economic Times
