Quest for top talent prompts startups to take acquihiring route
Acquihiring: This recruitment model helps build tech capabilities in a much quicker fashion compared to other hiring methods
Acquihiring is the latest recruitment trend that start-ups are increasingly adopting as they are constantly looking for high-quality talent. Byju’s, Infoedge, infra.market, Dvara KGFS, BitClass, DataWeave, HealthifyMe, Instamojo, Lenskart and Saveo Healthtech are some of the start-ups that have adopted acquihiring, according to a report in The Economic Times. Acquihiring is an innovative recruitment model in which both the product and the talent are acquired.
Benefits of acquihiring
The are multiple benefits of acquihiring. It is seen as an efficient way to acquire niche talent. Through acquihiring, a company can build a fast-paced team quicker, unlike through a conventional talent acquisition route in which a lot of time and effort are needed.
The urge to grow fast is giving fuel to this trend as you get the product and the team to run it, Amit Nawka, partner, at PWC India told the media. Aaditya Sharda, founder of Infra.Market, a construction solutions startup, said acquihiring makes sense for fast-growing companies such as his firm.
According to global management consultancy firm Zinnov, there are three key reasons behind a company’s decision to acquihire.
Companies primarily take the acquihiring route to build tech capabilities. “Companies need to constantly upskill their workforce. When start-ups bring forth tried and tested talent that has the necessary skills, it adds great value since it allows the company to reduce the time taken to upskill candidates before setting them to their tasks. Many global corporates are acqui-hiring Indian start-ups with the purpose of creating teams with new-age digital skills in AI, IOT, and RPA,” Zinnov said in a study.
Citing entrepreneurial culture as another reason for acquihiring, it said as technology giants grow bigger, their propensity to take risks and pivot reduces. “By creating teams around entrepreneurs, they can build a bold and innovative culture. Adoption of lean and agile methodologies, and a result-oriented mindset, prove highly beneficial for companies looking to stay ahead of their competitors.”
Infoedge, the parent company of Naukri.com, had acquihired DoSelect, a data-driven skill assessment platform for hiring and skilling.
The media report cited the examples of Edtech startup BitClass acquihiring Chase, a Bengaluru-based exploration and learning digital platform designed for millennials, and DataWeave, a digital e-commerce analytics platform acquihiring Sparrosense, an AI Video Analytics SaaS platform.
Pravin Prakash, chief people officer, Byjus’s said that acquihiring helps in bringing in the right talent pool. All our acquihires have seamlessly contributed towards building strong tech and product teams, he added.