Talent Connects Raises Rs 3.5 Crore from Shark Ritu, Offers LinkedIn-Level Hiring Tools at Lower Cost
साउन २५, २०८२ २०:७
Kathmandu: In 2018, after completing his MBA in Thailand, Divash Thapa, founder and managing director of Talent Connects, was working at international supply chain giant Li & Fung in Hong Kong, China. He enjoyed a good salary, a company car, and an apartment.
Then, his father’s health suddenly deteriorated. As an only child, he could not ignore family responsibilities and returned to Nepal with a job offer from Daraz Nepal, an Alibaba-run online marketplace. “There was also a good-paying job in Thailand. I thought my education and experience would get me a decent salary at Daraz,” he recalls. But when he learned the pay would be only half of what he expected, he turned down the offer.
Thapa earned his MBA at the Asian Institute of Technology (AIT) in Thailand, starting in 2015. In 2016, he attended summer school at IIM Ahmedabad in India, and in 2017, he studied at HHL University in Germany under an exchange program. His two-year MBA gave him exposure to three universities, diverse cultures, and peers from around the world, with a major in Strategy and Marketing.
Searching for the Right Opportunity
After rejecting Daraz, Thapa found no suitable supply chain roles in Nepal. With his father’s health improving, he spent 28 days in Singapore applying to various companies online and in person.
There, he got the chance to observe a unique working culture. “Companies didn’t hire employees directly. When I approached them for jobs, they said, ‘Go and talk to our HR partner,’” he recalled.
The HR business partner handled everything, from screening and shortlisting potential employees to background verification and issuing work permits. Only then did companies make the final appointment. Divash also visited an HR company called Recruit Express while job hunting. There, he saw many people being trained and interviewed. Most employees appeared to be working like call center staff, wearing headsets.
Unable to find a job matching his qualifications in Nepal, Divash had come to Singapore, and the visit sparked a new idea. He realized that an HR company could be a strong business in itself. “After that, I didn’t even sit for the interview. I thought of starting a company that would connect young people like me, who couldn’t find jobs matching their skills, with companies looking for capable employees. On my way back from the Recruit Express office, the name ‘Talent Connects’ came to me,” he said.
The First Client Was an International Company
In January 2019, less than a month after moving to Singapore, Thapa returned to Nepal and registered Talent Connects. He purchased the rights to Canada’s Preview HR assessment software to provide HR-related services, enabling companies to easily assess candidates when hiring.
He then began approaching large business houses for clients. “I had hired two employees. Their job was to schedule my meetings with HR heads or managers of major companies. My job was to meet them and demo how the software works,” he said. Despite six months of continuous effort, he could not secure a client. Nepali companies were reluctant to adopt the system, finding the software complicated and too dependent on manual work.
About six months after the company’s launch, British firm Dogma Group, which provides customized services to technology giants like Microsoft and Salesforce, offered to outsource its HR hiring to Talent Connects. Managing Director Thapa recalls that Dogma Group CEO Eddie Harford praised their assessment platform. “But they said they wouldn’t use the platform themselves. They offered us their hiring work instead,” he said. A six-month agreement was signed at $900 per month.
The first customer paid in dollars, with a single client’s payment covering rent and the salaries of two employees. Talent Connects handled recruitment by sourcing candidates, conducting the first round of interviews and assessments, and forwarding shortlisted candidates to Dogma Group for final interviews and selection.
Since the company needed highly skilled technical staff, Talent Connects used LinkedIn Recruiter’s premium version to advertise and find potential candidates. Satisfied with the service, Dogma extended the contract for another three months. The collaboration also brought them closer to other international clients, leading to partnerships with companies such as Fuse Machines and Cotiviti.
As clients grew, Excel sheets were no longer sufficient for managing HR details. Thapa realized the company needed its own technology. He hired two interns and two developers to build an Applicant Tracking System (ATS) that allowed candidates to apply directly, internal teams to add applicants, and shortlisted information to be shared via email.
However, paying for LinkedIn Recruiter in dollars became a challenge, as Nepal has strict foreign exchange limits. “Even for dollar payments, I had to tell someone and physically go somewhere to process it,” Thapa recalls.
This led him to pursue LinkedIn’s API. “LinkedIn used to sell APIs, but they weren’t very interested in providing them for a small market like Nepal. I worked hard for one and a half years to get it, and finally, we succeeded,” he said. Since Dashain last year, Talent Connects has operated its ATS using LinkedIn’s API. Thapa says this has transformed both the company’s operations and market reach, making their service exclusive, as local job portals and competitors cannot import the API.
How Talent Connects’ ATS Works
With the API integration, client companies no longer need to pay high fees in dollars or purchase LinkedIn’s premium version. Through Talent Connects, they can post jobs on LinkedIn at a lower cost while accessing all premium features.
LinkedIn’s premium version is typically limited to HR staff, but the Talent Connects system allows unlimited users from the client company.
Thapa says LinkedIn now has over 1.6 million users in Nepal, mostly educated and active professionals. “That’s a graduate and somewhat active population, so LinkedIn is the right choice for hiring right now,” he said.
LinkedIn Recruiter Lite costs $170 a month per license, while the professional version costs $900. Talent Connects charges $149 per month for up to 10 vacancies or $399 for unlimited postings, payable in Nepali rupees.
When a job opening is posted through Talent Connects, it is also shared on the company’s LinkedIn page. Thapa explained that this boosts the employer’s visibility in the market and helps with branding.
Once a vacancy is posted, LinkedIn’s AI matching algorithm sends candidate profiles that match the job requirements directly to the company’s email. After candidates apply, Talent Connects’ ATS generates a report based on their biodata, including education and work experience. It also tracks the candidates throughout the process.
Thapa said the ATS can handle shortlisting notifications via email, interview scheduling, conducting online interviews, and providing feedback. The company can then hire the best candidate after interviewing those shortlisted.
Managing Director Thapa noted that Talent Connects’ ATS is effective for companies with 40 to 50 employees and larger corporations. “Previously, it was hard to identify suitable candidates. Our system filters candidates to create a shortlist. From that, companies can interview and select their preferred candidate,” he said. “For companies with high employee turnover, two to four employees leaving each month, it’s difficult to find the right fit. This system is ideal for them.” However, he added that the system might be costly for small teams of five to seven employees.
Currently, 292 companies, including Huawei, Baltra, Panchakanya, Ace Group, and Foodmandu, use Talent Connects’ ATS. More than 80% renew after their subscription ends.
Thapa does not see local job portals as competitors. “Our system works differently. We’re preparing to compete in the international market from Nepal, while job portals are focused only on the domestic market,” he said.
Why Talent Connects is Cheaper Than LinkedIn Premium
Thapa says Talent Connects benefits from Nepal’s geographic location. Because salaries and costs for tech employees in Nepal are lower compared to international markets, the services are relatively affordable.
He explains, “Hiring a lead software engineer abroad can cost up to NPR 10 million per year, while in Nepal, engineers with similar skills can be hired for about NPR 100,000 to 150,000 per month.” The comparatively lower costs allow Talent Connects to offer its services cheaper than other countries.
This, Thapa believes, gives the company a chance to compete internationally. According to him, Talent Connects can sell its services in more than 190 countries worldwide. This means the company can provide HR services with ATS systems at affordable rates both in Nepal and global markets.
To increase ATS effectiveness internationally, Talent Connects has integrated with various global job portals. It has secured APIs from India’s Naukri, the US’s Indeed, Australia’s Seek and Jora, and Google for Jobs. This allows client companies to post job ads not only on LinkedIn but also on these portals when opening vacancies. Recently, Thapa said the company has also started offering software as a service (SaaS) products.
Adding HRIS Features
While providing the ATS system for employee recruitment, Thapa said clients also requested a Human Resource Information System (HRIS). In response, the company has begun preparing to introduce an HRIS for employee management.
This system will handle tasks such as onboarding new employees into the office system, attendance, leave management, payroll, and tracking employee performance.
Thapa believes the HRIS will help establish the company as a provider of more effective HR solutions. The monthly fee for the HRIS varies based on the number of employees in the office. The system charges $1.50 per employee per month.
Shark Tank Nepal
Thapa, who has run Talent Connects for the past six years, also appeared on the business reality show Shark Tank Nepal aired on Himalaya TV. All the sharks showed interest in investing in his startup.
The sharks valued Talent Connects at NPR 100 million and offered an investment of NPR 15 million for 15% equity based on key performance indicators (KPIs). Thapa decided to accept a solo deal from shark Ritu Singh Vaidya. Managing Director Thapa said, “I chose to accept Ritu ma’am’s offer because I believe having one mentor is better than many on the board.”
After the deal, Thapa said he held multiple discussions with shark Vaidya. During this process, her team saw strong potential for the company in international markets and agreed to increase the investment to NPR 35 million. However, Thapa declined to disclose the equity share details.
Thapa shared that the networking support from the Vaidya Group has helped expand the company’s market in India. He also mentioned that the company has increased its staff since appearing on Shark Tank. “Earlier, we had a team of 10, including four in the technical department. Now, the tech team alone has grown to seven,” said Thapa. With the new investment, he plans to expand into other countries as well.
पछिल्लो अध्यावधिक: साउन २५, २०८२ २०:७
