Mynavi Acquires Majority Stake in HRtech Startup Awign in Strategic Move

In a significant move within the HR tech industry, Awign, a leading work-as-a-service platform, has announced a strategic acquisition of a majority stake by Mynavi Corporation, marking a noteworthy development in the sector.

The acquisition, conducted entirely in cash, positions Mynavi as a key player in Awign's future trajectory, while also signifying the departure of several early backers, including Capria, Lumis, MSDF, Amicus Capital, and Pankaj Bansal.

This strategic partnership follows Awign's recent initiatives aimed at strengthening its position in the market. Earlier in 2022, the Bengaluru-based company introduced its first employee stock option (ESOP) buyback program valued at Rs 4 crore, following a successful $15 million Series B funding round co-led by Bertelsmann India Investments and Amicus Capital Partners.

By aligning with Mynavi and bolstering its financial resources, Awign aims to pursue long-term strategic growth initiatives while insulating itself from the fluctuations of the fundraising market environment, as stated in the company's press release.

Established in 2016 by Annanya Sarthak, Gurpreet Singh, and Praveen Kumar Sah, Awign specializes in providing end-to-end outcome-based execution solutions for enterprises, covering aspects such as discovery, deployment, and payroll management. This acquisition is poised to enhance Awign's capabilities in serving a broader range of global enterprise clients.

The move comes amidst a shifting landscape in the HR tech space, as highlighted by insights from the startup intelligence platform TheKredible. Funding in the sector experienced a significant decline, with a decrease of over 70% to $90 million in 2023 from $315 million in 2021. However, in 2022, the industry witnessed a notable surge in funding, amounting to $341 million.

As Awign embarks on this new chapter under the stewardship of Mynavi, the partnership holds promise for driving innovation and expansion within the HR tech ecosystem.