RAMSSOL Group sets its sights on SEA’s growing demand for HR tech following public shares oversubscription

• Upcoming listing marks the
  first Malaysian-owned HCM Solutions provider on BURSA’s ACE
• Recent public
  oversubscription of company’s shares signal market appetite for cloud, AI-based
  HCM solutions and employee engagement platforms
• CEO Cllement Tan carves
  niche and becomes youngest founder entrepreneur to reach IPO in recent times, spotlighting
  HR Tech as the next frontier in business digitalisation
• More than 50 per cent of
  funding to be used for Product Expansion and R&D, leapfrogging Malaysia’s
  leading role in the development of emerging tech

 

CYBERJAYA,
MALAYSIA – Media OutReach – 9 July 2021 – RAMSSOL Group Berhad (RAMSSOL), an innovative, digital
human capital management (HCM) solutions provider aims to advance the adoption
of Human Resource Technology (HR Tech) in and mainstream digitalisation of HR
functions as part of its Southeast Asia focused IPO agenda. The company’s ambitions
come at a time when there is an accelerated need for organisations to get back
on a growth track empowered by its key enablers – talent and technology.  

 

An
independent study by Smith Zander has shown accelerated expansion of the HCM
industry, from USD226.86 million (RM975.68 million) in 2017 to USD257.69
million (RM1.08 billion) in 2020, growing at a compound annual growth rate
(CAGR) of 4.34%.  The study, covering Malaysia,
Singapore, Vietnam, Thailand, Indonesia and the Philippines, recognises today’s
expanded HCM scope of total talent management, employee engagement and
collaboration, cloud and mobile capabilities, and artificial intelligence (AI) and
analytics – aside from traditional functions such as payroll, recruitment, and
time tracking.

 

Helmed
by Cllement Tan, Group Managing Director and Chief Executive Officer, the
14-year industry veteran and the youngest local technopreneur to list on BURSA,
explains, “HR practitioners today are challenged in attracting and retaining
top talent and establishing talent pipeline for agile organisations. The
disconnect between talent touchpoints such as hiring, learning, performance,
career, succession planning, and engagement has never been more pronounced. HR
digitalisation and HCM transformation, therefore, must be a part of an
enterprise-wide agenda for business viability, ensuring that one’s HR tech
infrastructure provides strategic insights to key decision-makers.”

 

Employee engagement and collaboration platforms as differentiators in the
talent war

 

There
has been a surge in the demand for employee engagement and collaboration
platforms since the outbreak of COVID-19, which makes RAMSSOL’s in-house mobile
application, Feet’s, immediately relevant in today’s context of a hybrid,
multigenerational and digitally-savvy workforce. As companies become more open
to adopting intelligent technologies and creating a best-in-class employee
experience, the app enables connected, happier and productive workplaces by modernising
communications between employees. Recent integration with Zoom allows users to access
or create Zoom meetings or webinars, bringing together on-site and virtual
attendees without having to switch out of Feet’s mobile application or invest
in additional enterprise subscription fees.

 

Elaborating
on RAMSSOL’s HCM technology applications, Cllement said, “Feet’s has
additionally adopted gamification elements to drive proactive and interactive
participation no matter where employees are based, complemented by other built-in
functions such as forums, peer recognition tools, suggestion platforms and meal
groups. Our other signature solution is in the area of collaboration tech
offered through LARK. Acting as a virtual office, LARK facilitates real-time communications
and collaboration between employees, hosting several work-related functions
such as document creation and editing as well as cloud storage and file sharing.

 

Measured
in terms of sales revenue, the Smith Zander report shows the employee
engagement platforms market chalked a growth from USD1.77 million (RM7.61
million) in 2017 to USD2.67 million (RM11.22 million) in 2020 at a CAGR of
14.69 per cent.  On the other hand, the
size of the collaboration platforms market grew from USD249.95 million (RM1.07
billion) in 2017 to USD400.90 million (RM1.68 billion) in 2020 at a CAGR of
17.06 per cent – and combined, they reflect a purposeful shift in HR practises as
companies aspire to create a competitive edge in the looming talent war.

 

Demand in AI and real-time data fuels RM10.4M IPO allocation in regional
Product Expansion and R&D     

 

Representing
more than 50 per cent of RAMSSOL’s RM25.1M total IPO target, the company’s
focus on regional product expansion and R&D is buoyed by the adoption of HR
Tech in the Asia Pacific[1] that has been in
double-digits for the last three years.  The
company looks to further mainstream HR digitalisation and workforce management technologies
among SMEs, billed as the fastest-growing segment among all new HR Tech
adopters – creating more equitable economic recovery opportunities in SEA. 

 

“What
is certain is that technology will continue to play an essential role in
helping HR teams build sustainable organisations and drive operational
efficiencies.   As practitioners turn to cloud
and AI-based solutions, RAMSSOL’s product development roadmap anchored on introducing
new functionalities is timely. This includes enhancing Feet’s with AI
technology and developing bolt-on modules for our cloud-based HCM solutions,” emphasises
Cllement.

 

Leveraging
an international clientele that includes Megatech Education, Export Import Bank
of Thailand, CapitaLand Business Services Pte Ltd, Bank Of Ayudhya Public Co.,
Ltd and PT Sigma Solusi Integrasi, RAMSSOL’s expansion agenda is backed by HR
Tech expertise spanning over a decade, and a robust technology stack.  The company’s IPO scheduled for 13 July 2021
marks the first move of its kind for a homegrown HCM solutions provider and
allows it to expand its existing SEA footprint into the Philippines.

 

“We
are fortunate to have earned the trust of many customers over the last 12 years
of our operations and excited for what lies ahead for RAMSSOL. With the push
for greater operational and cross-departmental efficiency expected to drive
demand for HCM solutions, we look forward to establishing many more integrated,
digitalised HR environments, and build next-gen, fit-for-future enterprise
organisations as part of our commitment to “Advancing People through Technology,”
Cllement concludes.

 

Currently
operating in Malaysia, Singapore, Indonesia, Vietnam and Thailand, RAMSSOL’s
business consists of three principal activities: HCM and Student Management
Solutions; IT Staff Augmentation Services; and the provision of HCM Technology
Applications featuring products such as Feet’s, Lark and Zoom. The company was
recently awarded the Best SME in HR Solutions Provider at the SEBA 2020 Awards.

 

As
of FYE2020, RAMSSOL’s total revenue of RM25.33 million saw HCM technology
applications contribute RM9.1 million or 35.9 per cent, up from a marginal
contribution in 2019. The HCM technology applications arm, RAMSSOL’s other key
business principle that includes employee engagement and collaboration
solutions, registered a high gross profit margin of 90.4 per cent. The company’s
recent balloting with an offer of 11.20 million new shares at 45 sen each to
the Malaysian public was oversubscribed by 102.88 times, receiving 19,564
applications for 1.16 billion new shares valued at RM523.54mil.