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Quikr Acquires Babajob in Bid to Strengthen Position in Blue Collar Jobs Segment

It is expected that Sean Blagsvedt, co-founder and chief executive officer at Babajob and Vir Kashyap, co-founder and chief operating officer at Babajobs, who are at the Babajob board will quit post the acquisition.

Quikr India has acquired job listing company Babajob Services Pvt. Ltd in an attempt to strengthen its position in the blue collar jobs segment.

The two largest Indian aspiring job players—Babajob and QuikrJobs—into one entity, a tool to help everyone in India get a better job. QuikrJobs, the classifieds company’s job listing service, is already profitable and the combined entity of Babajob and QuikrJobs will become the largest platform for blue collar job seekers. It is clear that Babajob will continue to function as a seperate entity.

It is expected that Sean Blagsvedt, co-founder and chief executive officer at Babajob and Vir Kashyap, co-founder and chief operating officer at Babajobs, who are at the Babajob board will quit post the acquisition.

Babajob, founded in 2007 by Blagsvedt, Kashyap and Ira Weise, has raised at  least $10 million in multiple funding rounds. Its investors include SEEK  Ltd, a global online employment company, GrayGhost Ventures and Khosla  Impact. According to Blagsvedt, 8.5 million verified job seekers sought jobs from more than five lakh employers on Babajob. And in future the hiring a every level 

The model used scaled telephony, chat and mobile solutions to connect multilingual job seekers and employers. Babajob’s nearest competitor, Asaanjobs Pvt. Ltd, has raised about $6.5 million from Aspada Advisors, Inventus Capital and  IDG ventures. The online recruitment sector also witnessed some  closures with companies such as TalentPad and WhistleTalk shutting shop,  citing lack of scalability.

For Quikr, which has been on an acquisition spree since the past 18 months, this is the second acquisition in the jobs segment. In July last year, the company had acquired IDG Ventures-backed online job listing platform Hiree (Abhiman Technologies Pvt. Ltd) for an undisclosed amount. It has done a total of 11 acquisition and has raised total equity funding of $350.15M in 8 Rounds from 11 investors.

Over the past two years, Quikr has been diversifying into new businesses to boost sales.The company is pushing into five new business segments—automobiles, real  estate, jobs, services and customer-to-customer sales.

Having raised about $346 million from Kinnevik AB, Tiger Global, Steadview  Capital Management, Matrix Partners India and others since inception in  2008, Quikr has been an active buyer of smaller rivals, especially in  the real estate and home services segments, as it looks to bolster  fledgling revenues.

Since January last year, Quikr has bought nine companies: Commonfloor, its most expensive purchase yet for about $120 million and Grabhouse in the real estate segment; Stayglad, Zapluk, Salosa and Zimmber in beauty and home services segment; Babajob and  Hiree in online recruitment; and Stepni in the automobile segment.

Housing Development Finance Corp. Ltd (HDFC) is in talks with Quikr to sell its brokerage business HDFC Realty and its digital business HDFC Red in an  all-stock deal for about Rs350-400 crore.

Quikr clocked net sales of Rs41 crore in the year ended 31 March 2016, against Rs25 crore the year before. Its loss surged to Rs534 crore from  Rs450 crore in the same period.


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