Goldman Sachs Acquires Majority Stake in PeopleStrong for $130 Mn

Goldman Sachs has acquired a majority stake in PeopleStrong, a Gurgaon-based HR software-as-a-service (SaaS) firm, for $130 million (approximately ₹1,200 crore) reported The Economic Times. The deal involved Goldman Sachs purchasing Multiples PE’s 84% stake in PeopleStrong, along with a portion of the employee stock option (Esop) pool.

This acquisition marks a significant move in the HR SaaS space, following a similar private equity buyout earlier this year when Everstone Capital acquired Wingify for around $200 million. PeopleStrong, founded by Pankaj Bansal in 2005, serves over 500 companies across India, Southeast Asia, Australia, and the Middle East.

The company reported total revenues of ₹274.5 crore in FY24, slightly higher than ₹271.7 crore in FY23, and managed to turn profitable with a net profit of ₹57 crore, compared to a net loss of ₹84 crore in the previous year.

PeopleStrong’s CEO Sandeep Chaudhary expressed excitement about the partnership, highlighting Goldman Sachs’ global expertise in SaaS and AI as a key factor in driving the company’s next phase of growth.

The acquisition marks a significant development in the HR technology landscape in India.

This transaction, reported to be around a $130 million deal in some media coverage, underscores PeopleStrong’s robust market position as one of the few EBITDA-positive firms in the HR tech sphere and highlights its operational strength and growth prospects.

PeopleStrong is widely recognized for its AI-powered HCM platform that integrates key capabilities such as applicant tracking, payroll processing, employee experience management, and talent management. With over 1.5 million paychecks processed monthly and a growing client base that includes major organizations across sectors such as banking, retail, aviation, and healthcare, the company currently serves more than two million individual users.

The strategic investment is expected to fuel the next phase of PeopleStrong’s expansion—its ambition is to scale up to 10 million users globally within the next five years. This growth plan is driven by an emphasis on AI-led product innovation and deeper market penetration, both domestically and across emerging international markets like the GCC region.

For PeopleStrong, the deal with Goldman Sachs Alternatives is more than just a capital infusion—it represents a partnership that leverages Goldman Sachs’ deep expertise in SaaS and global market dynamics. According to statements by PeopleStrong’s CEO Sandeep Chaudhary, the alliance is intended to further drive operational excellence and technological innovation, ensuring that the company not only maintains its competitive edge in the HR SaaS space but also scales sustainably.

At the same time, for Goldman Sachs, this move reinforces its strategic commitment to high-growth technology sectors and the digitization of enterprise HR functions, areas that have been gaining significant traction in the global market.

Previously, a significant stake in PeopleStrong was held by Multiples PE, which had nurtured the company’s growth over the years. The transition to having Goldman Sachs Alternatives as a majority stakeholder signals confidence in PeopleStrong’s business model and its future prospects in the rapidly evolving HR tech arena. This deal also fits within a broader trend of private equity investments in SaaS companies, as investors increasingly focus on scalable, technology-driven platforms that promise both sustainability and robust returns.

Looking ahead, this acquisition sets the stage for PeopleStrong to accelerate its innovation and expand across new markets, reinforcing its position as a frontrunner in the increasingly competitive HR technology space. With the backing of a global powerhouse like Goldman Sachs, PeopleStrong is well-positioned to harness advanced AI capabilities and drive the transformation of HR practices, benefiting a diverse range of industries and clients worldwide.