The monk who sold his Santro | Pankaj Bansal @ PeopleStrong
The visiting card that would change everything was still in Pankaj Bansal's pocket as he walked into that posh school in South Delhi, seeking admission for his kid. He was twenty-eight, an HR director at Hughes Software Systems, and by all measures successful. But what happened next would reshape not just his identity, but eventually transform how millions of Indians experience work.
"I was trying to find an admission for my kid. And I took him to a school. It was a very posh school in south of Delhi. And when I walked in there, me and my wife, they asked me a question that, you know, if this school particularly have kids of, a particular economic step up. So are you comfortable?"
Bansal couldn't answer. He felt judged, diminished by their assumption based on the central car he'd arrived in while others had premium cars.
"I just couldn't reply. I couldn't answer anything. No one had told me. I felt like that day I realized how people with limited means, when spoken unfairly, how they felt. And I just walked out."
But then something happened that made the moment even more jarring.
"And I started walking out, and my card reached her. So my card read, Hughes Software and whatever. And immediately, the person came out and said, well, I didn't know you're for Hughes. So I said, no. I'm okay. I will find another school for my child."
That's when the realization hit him:
"But that day, what I got out was that my identity was that small visiting card. And that was the question which didn't allow me to sleep that night, that is that all who I am? And if I am just worth this card, then it's not worth being here. So that's the point which just nudged me to become an entrepreneur."
Twenty-seven years later, that same man would oversee Goldman Sachs' $130 million acquisition of PeopleStrong, the HR technology empire he built from that moment of rejection. But Bansal's story is more than a typical founder's journey - it's a masterclass in contrarian thinking, market timing, and the audacity to bet on sectors that others dismissed.
This article draws from Pankaj Bansal's extensive interview on the Founder Thesis podcast, hosted by Akshay Datt. For the complete conversation and deeper insights into his entrepreneurial journey.
Check out the video of the conversation here or read on for insights.
The Contrarian's Education: Why Arts and Entrepreneurship Mattered
In 1990, when India's economy was still trapped in the license-raj era, young Pankaj made a decision that horrified his family and friends: he chose Arts in Class 11. In a society obsessed with science and commerce, this was academic suicide.
"My friends started teasing me over science or commerce. The society started labeling me as a loser. My father got very pissed off that whatever I picked up, why couldn't I pick up anything else? Other than my mom, no one stood with me."
But there was method in his apparent madness. Bansal harbored dreams of becoming an archaeologist, driven by a love for history. When that path seemed impractical, he pivoted to something even more unusual for the time: a Bachelor's in Entrepreneurship from Delhi University.
"When we used to write, people used to say, what is this? They couldn't pronounce entrepreneurship. The course name was bachelor's in entrepreneurship and small business."
This early comfort with being misunderstood would prove invaluable. While his peers followed conventional paths, Bansal was already learning to see opportunities where others saw obstacles - a skill that would define his entire career.
The Hughes Software Apprenticeship: Understanding HR's Strategic Potential
Bansal's unconventional education continued with his career choices. Instead of traditional HR roles, he positioned himself as an executive assistant to CEOs at government institutions, gaining a 360-degree view of business operations. This strategic positioning paid off when he joined Hughes Software Systems (now Aricent) as head of learning.
Hughes in the late 1990s was revolutionary. The company had positioned HR at its core, with the CHRO on the board and speaking the language of business. When major customers visited, they spent 45 minutes of their three-hour meetings with HR - unprecedented validation of the function's strategic value.
"If you pick up all time top twenty workplaces or the contribution of HR, Hughes will definitely figure out. The CHRO used to talk business language. He was on the board. Every key decision in the company was happening."
This experience taught Bansal that HR could be a competitive advantage, not just a cost center. It was a lesson that would become the foundation of his entrepreneurial empire.
The First Venture: Learning from Electronic Program Guides
Before PeopleStrong, there was WithyaDirect, a Silicon Valley-funded startup building electronic program guides for Indian cable TV. The venture lasted ten months before the 2008 financial crisis killed it, but the lessons were invaluable.
"I learned that investor, client, and employees. You've got to do all three things together and make sure you have direct access to investors. It's your business. You're not dependent on anyone else."
When the funding dried up, three co-founders faced a choice. One would run recruiting, another consulting, and Bansal would build something called PeopleStrong. It was 2005, and the Indian HR tech market was virtually non-existent.
Building PeopleStrong: The Shared Services Revolution
Bansal's approach to building PeopleStrong was methodical and data-driven. He studied the 10-K reports of America's top ten public HR companies, searching for scalable business models.
"ADP revenue at that time was almost the same as Reliance. Shelley and I kept counting zeros and we couldn't believe. We said, how can a company, HR company be saying not now, but at that time?"
The revelation led them to focus on shared services - centralizing administrative HR work to achieve massive efficiencies. But there was a problem: angel investment in HR tech was literally zero in 2005.
Bansal's solution was audacious. He approached the very CHROs he hoped to serve as customers, asking them to become investors instead.
"I said, can you cut a check? I had the fortune of knowing them since I was young at Hughes. They knew me. I was part of this body called NHRD. And so I said, why don't you help?"
The strategy worked. Industry legends like Adesh Goyal, Santosh Mishra, and others cut the first checks, providing not just capital but credibility and market access.
The Near-Death Experience That Changed Everything
By 2009, PeopleStrong had grown to about ₹20 crores in revenue - substantial in a market where the largest player was ₹50 crores. But the global financial crisis brought the company to its knees. Projects were cancelled, senior executives consumed half the revenue in salaries, and cash was running out.
"We called the thirty five, forty people in the room, and we said, guys, we'll have to shut off. We are going nowhere because the projects are getting stored. We have three months of salary left. If you can stay on, stay on. Otherwise, leave. Out of thirty four, two left, thirty two stayed back."
Just when bankruptcy seemed inevitable, JT (Jotendra Thakkar), CIO of Reliance, called with an opportunity to build HR shared services for the conglomerate. The catch? Bansal would need to present to Mukesh Ambani himself.
"I said, meet, meet? He said, we wanna meet. I said, no. He said, yeah. I said, no. No. I can't meet. I'm not in the frame of mind."
The eventual meeting and subsequent ₹1.5 million project not only saved PeopleStrong but established its credibility in the market. More importantly, it taught Bansal about the transformative power of shared services at scale.
The Technology Pivot: Building India's First HR SaaS
By 2014, Bansal and his co-founder Shelley recognized that shared services alone wouldn't build a scalable technology company. The market was ready for cloud-based HR software, even if customers didn't know it yet.
"When we were going to the market saying that with shared services, we send cloud. People ask this question. A very well known company, and they said, when it rains, how will it work?"
Despite market skepticism, PeopleStrong launched India's first native HR app and chatbot. The app now boasts over 50,000 reviews with a 4.7-star rating - higher than global competitors like Workday.
The business model innovation was equally important. Instead of traditional licensing, PeopleStrong charged per employee per month and pioneered advance payment models where customers paid 2-5 crores upfront for multi-year contracts.
"We were, again, the first company who charged two to five crore rupees advance. No HR SaaS company by that time had signed. We walked up to the customers and tell them, okay. Your next four years, you give me upfront advance. I'll give you a discount."
The Ecosystem Strategy: Taggd and Wheebox
PeopleStrong's growth strategy involved building an ecosystem of complementary businesses. Taggd, launched as a digital recruitment process outsourcing (RPO) company, revolutionized how large enterprises hired talent.
Instead of traditional placement consultants who got paid only on successful hires, Taggd offered an "assembly line" approach with committed outcomes and advance payments.
"We basically told customers: You have to hire four thousand people a quarter. We will hire it for you like an assembly line. We'll get them assessed. We'll get them taken through the whole interview round. We get them onboarded and then hand over the keys to you."
The model worked spectacularly. Taggd became India's largest RPO provider, managing over half a million job placements across 100+ clients. In 2024, Everest Group recognized it as a "Star Performer" in their PEAK Matrix for RPO services. The business crossed ₹100 crores in revenue while remaining profitable.
Wheebox, the assessment platform, found its niche in education rather than corporate hiring. The company conducted assessments for over a million students and created the India Skills Report, which even the Prime Minister and President quoted. In 2024, Wheebox was acquired by ETS (Educational Testing Service), the organization behind TOEFL and GRE.
The Goldman Sachs Validation: $130 Million Exit
On April 15, 2025, Goldman Sachs Alternatives acquired a majority stake in PeopleStrong for $130 million - the largest exit in Indian HR tech history. The acquisition validated Bansal's two-decade bet on the sector and positioned PeopleStrong for global expansion.
Under CEO Sandeep Chaudhary (Bansal had transitioned to board member), PeopleStrong had achieved something rare in the SaaS world: profitability. The company serves over 500 enterprises across key industry verticals with multi-country payroll capabilities, processing over 1.5 million paychecks monthly.
"We have remained focused on balanced, sustainable growth and are proud to stand out today as one of the few EBITDA-positive SaaS companies with a leading market position."
The acquisition came at a time when the global HCM market is experiencing unprecedented growth, projected to reach $30 billion by 2030. PeopleStrong's positioning as the leading platform in APAC made it an attractive target for Goldman Sachs' expansion into the region.
Caret Capital: The Sustainability Investor
Even as PeopleStrong scaled, Bansal was building his next venture. Caret Capital, launched in 2020, focuses on three interconnected sectors critical to India's growth: mobility, distribution, and employment.
The fund's GRI framework (Growth + Returns + Impact) aims to create 10 million jobs while reducing CO2 emissions by 10 million metric tons. With a target corpus of ₹400 crores and average ticket sizes of ₹12-15 crores, Caret Capital has invested in companies like Celsius (cold chain logistics), Unstop (career platform), and TraqCheck (AI-based background verification).
"We said how investors are interested in growth and returns. That's the fiduciary responsibility we have. But impact is also important."
The fund's portfolio companies align with India's transition to Net Zero emissions by 2070, focusing on electric vehicles, efficient supply chains, and sustainable employment models.
Mission Karmayogi: Transforming India's Civil Service
Perhaps Bansal's most ambitious project isn't in the private sector at all. As a board member of Karmayogi Bharat, he's helping transform how India's 2.8 crore civil servants are trained and developed.
The initiative, launched by Prime Minister Modi, aims to replace a system where 99% of civil servants received the highest ratings with one focused on competency-driven performance.
"For last seventy years, the civil servants are getting ninety nine percent of them best ratings. Can you believe this? Because you're encouraged to not take risk since independence."
The iGOT (Integrated Government Online Training) platform has already enrolled over 3 crore users with 2.2 crore course completions. It's the largest civil service capacity building program ever attempted globally.
"No country ever have launched such a large capacity building for civil servants. We are building on Sunbird. We took help of EkStep. We are building something which we will be very proud of."
The Philosophy: Consciousness + Competence
Throughout his journey, Bansal has been guided by principles from the Bhagavad Gita, which he studied religiously during PeopleStrong's early years. His framework for success combines consciousness (values and awareness) with competence (skills and execution).
"Krishna and skill is being married. Which means that's where the opulence, success, morality will be there as my opinion."
This philosophy extends to his approach to scaling organizations. Bansal has developed a four-stage framework used across 22+ companies: defining purpose, devolving power, enabling people, and managing consequences.
"If my company is going at fifty percent, then I should take fifty percent decisions less. Then only I can grow. If you're taking the same old decisions means you have not grown, company has grown."
Market Context: The HR Tech Revolution
Bansal's success came from recognizing the HR tech opportunity before it became obvious. When PeopleStrong launched in 2005, the Indian market was dominated by global players like SAP SuccessFactors and Workday, with little Indian innovation.
Today, the Indian HCM market is projected to reach significant scale, driven by digital transformation and the rise of distributed workforces. Companies like DarwinBox and Greytip have emerged as competitors, but PeopleStrong's early market entry and ecosystem approach have maintained its leadership position.
The RPO market, where Taggd dominates, is expected to reach $12.4 billion globally by 2030, with India playing a significant role in this growth.
Lessons for Aspiring Entrepreneurs
Bansal's journey offers several key insights for startup founders:
Contrarian Thinking Pays Off: From choosing Arts to betting on HR tech, Bansal's biggest successes came from zigging when others zagged.
Market Timing Over Market Size: Rather than chasing large existing markets, Bansal identified emerging trends and built positions before competition arrived.
Ecosystem Thinking: Instead of building one company, he created a portfolio of complementary businesses that reinforced each other.
Values-Driven Leadership: His emphasis on consciousness and competence created sustainable cultures that survived multiple crises.
Government as Customer: His willingness to work with government opened massive markets that private-sector-only companies miss.
The Future: Profitable Growth Over Growth-at-All-Costs
As Bansal transitions from operator to investor and board member, his companies continue growing profitably. The combined PeopleStrong ecosystem is targeting ₹500+ crores in revenue, with 70% domestic and 30% international split.
"We are okay to be not revenue wise number one. But we would like to be the most prominent player, and amongst the top two, three always whichever geo we are in. That's the aim, but profitable. Rather than being loss making and become number one."
This philosophy of sustainable growth over venture-capital-fueled expansion has proven prescient as many high-growth, loss-making startups struggle in the current market environment.
From Visiting Card to Legacy
The school teacher who questioned Bansal's economic status based on his car would be surprised to learn that the rejected parent went on to build one of India's most successful HR tech ecosystems, help transform the country's civil service, and become a significant voice in sustainable investing.
But perhaps most importantly, Bansal has moved far beyond the visiting card identity that once defined him. Today, he serves on multiple boards, teaches the Bhagavad Gita to CEOs at his home, and continues building companies that create meaningful employment.
"I was very clear. I didn't know who I am, but I knew this I was not."
That clarity - knowing what you're not while remaining open to what you might become - may be the most valuable lesson from Pankaj Bansal's remarkable journey.
What aspects of Pankaj Bansal's entrepreneurial journey resonate most with your own experiences or aspirations? Share your thoughts in the comments below and let us know what lessons you're taking away from his story of building a $130M HR tech empire while transforming India's digital infrastructure.
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