HR tech firm earmarks $6M for Phl expansion

Sprout Solutions is facilitating massive migration from analog to digital among companies, which is projected to pose a huge impact on how Philippine society will function in the future.

Sprout Solutions, a start-up firm focused on technology solutions in the field of human resources, announced it has raised $6 million to support its expansion in the Philippines.

At a press briefing in Taguig, Sprout co-founder and CEO Patrick Gentry said the venture capital would be used to fast-track expansion in Davao, Cagayan and Baguio.

It will also bankroll its artificial intelligence products for business clients.

The decision to raise the capital started in late 2017 when Gentry and co-founder and CPO Alex Agbayani Gentry observed that the HR-tech industry has a large market potential in the Philippines.

“Growing a business in the Philippines from scratch is nothing like in Silicon Valley. The trust barrier here is so high, so you have to focus on overcoming that obstacle before you start to see any success. The corporate environment here is quickly transforming to become much more conducive for new businesses to thrive,” Gentry told reporters.

Gentry said they are facilitating massive migration from analog to digital among companies, which is projected to pose a huge impact on how Philippine society will function in the future.

“Not only is this helping the development of Philippine tech startups, but it’s also putting the country on the global map for foreign investment interests,” he noted.

The expansion will also prompt a new wave of foreign investments in the Philippines from investors such as Point72 Ventures, a US investment firm that has chosen Sprout to be its first venture in Southeast Asia.

Based on the initial study by Sprout, there are 32 different pay rates in the Philippines which international Enterprise Resources Planning cannot automate.

In contrast, Sprouts can automate them for payroll calculation, not only because it simplifies payroll processes but because it can bring significant business values from the data it collects.

Sprout Solutions is a software company that aims to help companies in the Philippines grow through their suite of back-end solutions that address HR, payroll and recruitment difficulties.

The company’s innovative, the technology-enabled platform helps companies of all sizes in the Philippines streamline and analyze their HR processes, while also offering a compliant and modern employee-centric experience.

To date, Sprout currently serves more than 300 firms including startups, small- and medium-sized enterprises, and large organizations.