Recruiter.com completes $12 million IPO

Recruiter.com Group has completing its initial public offering (IPO). It sold 2.4 million units at $5 per unit, giving it a market capitalization of $29 million.

The company has its head office just west of downtown Houston. It operates an online platform that connects small and independent recruiters and employers.



Recruiter.com was formed in 2010 by Miles Jennings, who is now the COO. Mr Jennings has worked in recruiting and online recruiting since 2003. He previously worked at Adecco and Indeed,com and is based in Connecticut.

The company is led by CEO Evan Sohn, based in New York. He has considerable experience in online payment systems. CFO Judy Krandel is also based in New York and joined the company in June 2020. She was previously the CFO at a company that provided chat and messaging technologies for social media networks.

In March 2019, Recruiter.com acquired the customer lists of Genesys Talent for $8.6 million in stock. Genesys, now called Opptly, is based in Houston and provides client-matching software for recruiters and employers. Recruiter.com agreed to license the client-matching software from Genesys until March 2021.

At the same time as the Genesys acquisition, the company completed a reverse takeover of a shell company that was trading over-the-counter.

The company has made a number of acquisitions this year;

  • Scouted in January for $1.8 million. The business will help expand its video hiring solutions.
  • Upsider in March for $3.9 million. The company will use Upsider’s machine learning artificial intelligence to assist in developing its recruiting tools.
  • OneWire in May for $1.3 million. The company has an expansive candidate database in financial services.

For 2020, the business had revenues of $8.5 million and an adjusted EBITDA loss of $2.8 million. It used $2.5 million cash in operations in 2020 but only had $0.1 million on hand at the end of the year. Not surprisingly, the filing statement states there is substantial doubt that the company will continue as a going concern.

The company will receive $8.8 million, net of expenses, and will use the money for working capital, sales and marketing, R&D and funding for growth strategies.

S-1 filing – Recruiter.com

 

 

 

 

 

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