TeamLease Services increases stake in Avantis Regtech and renames company to TeamLease Regtech
Avantis Regtech is India’s most comprehensive employer compliance SAAS platform and helps 1500 legal entities track over 69,000+ compliances, 6700+ filings and 3,500+ annual changes
National, October 2021:
TeamLease Services, India’s leading Human Capital and Staffing firm, today
announced increasing their stake in Avantis Regtech, the industry leader in digitization of Compliance
Management to 61.5%. Along with this equity infusion, the strategic partnership will be expanded by
changing the name of the company and brand to TeamLease Regtech.
TTeamLease Regtech will offer a state-of-art web SAAS based web and mobile based digital platform to
over 1,500 entities, 20,000 enterprise users across 45 industries for the stock and flow of Indian
employer compliances. For stock, the platform supports the centralized creation and management of
over 5 million compliance documents via a customized database of 1,536 Acts that create 69,233 unique
Compliances applicable to corporate India. For flow, it digitizes over 3,500 annual regulatory updates
from over 2,200 regulatory websites. In addition, the company serves as a platform that enables over
2,000 CAs (Chartered Accountants) and 1,300+ PCS (Practicing Company Secretaries).
Commenting on the partnership, Ashok Reddy, Managing Director, TeamLease Services, said, “COVID
has accelerated the digitization of employer plumbing by ten years. Simultaneously, policy makers are
adopting a new policy thought world that moves beyond the now discontinued World Bank EODB ranking
to an employer perspective. Regtech is important infrastructure for Putting India to Work and in
anticipation of the addressable market expanding by 20x , we are excited to expand our partnership with
Avantis”.
The increased space and demand for Regtech is driven by three new thought worlds among policy
makers, companies, and board members. Policy is pushing for a new approach to ease-of-doing-business
around rationalize, decriminalize and digitize. Companies are adopting a new control and compliance
thought world of paperless, automated, and real-time systems. And board members are increasingly
asking their companies to embrace ESG and report progress. The statutory compliance market is
currently pegged at 5000 crores, largely serviced by offline unorganized players. Only 1% of this market
offers tech enabled solutions. A-25 fold increase is expected in technology enabled compliance space in
the next five creating an exponential market opportunity.
Rishi Agrawal, Co-founder & Director, TeamLease Regtech, said, “Corporate India faces rising demands
for robustness and transparency in governance, risk and compliance. Traditional, manual, ad-hoc, paper
based and people dependent compliance fail to scale. Avantis started in 2015 and entered into a strategic
and equity partnership with TeamLease Services in 2018; expanding this partnership was logical as policy
makers target multiple ease-of-doing business metrics to expand formal job creation”.
Of India’s 63 million enterprises, we believe every one of the 1 million employer based social security
payers represents an addressable market, but in the first phase we are targeting the roughly 25,000
companies with a paid-up-capital of more than Rs 10 crore. The company has architected its offering into
two stacks; DIY (do it yourself) that targets corporate customers in self-service mode and DFM (do it for
me) that targets service providers (CAs, CSs & Labour Consultants). Avantis has also been closely working with several union and state government departments to help them rationalize (reduce the number of
compliances), decriminalize (reduce the number of criminal provisions) and digitize (build a national
open compliance grid that allows paperless, presence less and cashless compliance).
Open architecture policy intervention precedents in payments (UPI) and taxes (GSTN) provide useful
templates to reimagine the future of compliance that will create huge opportunities for Regtech players.
The current challenges and opportunity is summarized by the infographic below:
About TeamLease Services Limited TeamLease Services (www.teamleasegroup.com) is a leading human
capital management company offering a range of solutions to 3500+ employers for their hiring,
productivity, and scale challenges. A Fortune India 500 company listed on the NSE & BSE, TeamLease has
hired 18 lakhs+ people over the last 19 years. One of India’s fastest growing employers, TeamLease also
operates India’s first Vocational University and India’s fastest growing PPP National Employability
through Apprenticeship Program (NETAP). The Company offers solutions to large, medium, and small
clients across the 3Es of employment (1.7 lakh+ employees), employability (2 lakh+ learners) and
eworkforce (1000+ employers).