IPO Watch: Recruiter Hiremii to make ASX debut after revenue rises to $6m in just 3 years
A new tech-focused recruitment company is about to list on the ASX, riding on the back of Australia’s fast recovering job market.
Enter Hiremii (ASX:HMI), a young, fast growing company, which grew its revenue from $0 to over $6 million in just three years.
Founded in 2016, the company uses machine learning and artificial intelligence to remove the tedious tasks associated with the recruitment and vetting process, giving its clients time as well as cost savings.
Speaking exclusively with Stockhead, Hiremii CEO Chris Brophy says its technology is able to significantly reduce the whole process of recruiting, from the 48-60 days average time, to just five days in some cases.
He says the company is able to achieve this by using its proprietary AI technology to parse through the applications, which may come in different formats, and match them with the employers’ specific requirements.
“If you look at what the traditional recruiting process looks like, clients will probably go to the job board, and they will receive hundreds of applications back which might be in different formats, and then create a shortlist.”
“For us, what’s different is that the individual’s information is parsed by the AI system, which extracts the information and is populated into the system as constructive candidate profiles,” Brophy explained.
Brophy says that this allows the company to not only scan the job titles of candidates, but also their skillset and experiences, which ultimately gives a better match for the client.
“That’s what the algorithm does, it not only looks at what the individual calls themselves because people can call themselves different things in different industries. It will actually look at the skillsets involved, against what the requirements are,” Brophy explained.
He pointed to the fact that Hiremii has been able to achieve more revenue with just 3,500 candidate profiles on the platform, compared to other recruiters who supposedly have tens of thousands profiles.
Hiremii operates two business models – a fixed fee recruitment service and a full service labour-for-hire business.
For the fixed fee service, the company currently charges a success fee of $4,500 for white collar jobs, and $1,250 for blue collars. This compares to the commonly higher fees of 15-25 per cent of base salaries that most other recruiters are charging.
Brophy said it is able to offer these low fees due to its low-cost tech-focused business model, which can scale without needing to hire more representatives and agents.
Underpinning the business model is its technology, which can process a large volume of candidate profiles and client positions.
This nimble business model is also one of the reasons the company is able to increase its revenue from $0 to $6 million in just three years.
The company has also taken a careful and measured approach towards its capital spend, having developed the technology to the extent that it does not have to continually spend $10 million a year on it like other platforms, according to Brophy.
Hiremii has raised $6 million in its IPO, which was 2.5x oversubscribed and completed within just 24 hours. The IPO has valued the company at around $14 million market cap.
The company sees a potential blue ocean, but wants to focus first on the Australian recruitment market, which it says has grown to a $40 billion market.
So far, it’s been able to achieve its phenomenal growth by using minimal capital, having raised only $4.5 million over the last few years.
Brophy does not expect a breakeven this year, but instead, wants to focus on expanding the company’s capabilities and developing its technology with the money raised.
With the new funds under his belt, the company believes it can accelerate its expansion even faster.
“We’ve taken the traditional recruitment business, and overlaid technology on that. So rather than building people and geographic, we invest in technology,” said Brophy.
“We’ve flown below the radar for some time, and now we’re here and it’s time for us to share our journey with the rest of the market.”
Hiremii’s ASX debut is yet to be announced, but is expected to be some time this week.