Revolutionizing HR: An Inside Look into Sprout Solutions' Growth and Partnership with Mynavi Corporation

Sprout Solutions is the biggest B2B SaaS company in the Philippines and provides cloud-based HR and payroll software solutions to businesses of all sizes. Their platform includes features such as timekeeping, leave management, performance management, and benefits administration, among others. Sprout Solutions aims to streamline HR processes and help businesses improve their overall efficiency and productivity. Sprout has garnered numerous awards for their groundbreaking solutions, as evidenced by their impressive 4.7-star rating on Capterra and their notable 9th place ranking on the prestigious 2023 High Growth Champions list.

Sprout has closed its Series B round with Mynavi Corporation as one of its investors. With that, let’s learn more about Sprout Solutions with its CEO and Co-founder, Patrick Gentry.

*Disclaimer: By annual recurring revenue.

What is Sprout Solutions and what makes it different from other HR tech startups? 

Sprout Solutions is the leading cloud-based HR platform that revolutionizes workforce management for Philippine businesses. Our end-to-end solution automates and optimizes the entire HR cycle, saving time, reducing costs, and generating actionable insights that empower employees and fuel business growth.

What led you to establishing Sprout Solutions? 

What led me to establish Sprout was a pain point that we had in our business in the Philippines. I was one of five people who founded a company here and in that company, we were growing fast and hiring talent and really struggling with HR and Payroll. We looked for solutions in the market and didn't find any. So we built something and used that internally for a number of years and then I spun it off as Sprout.

Where do you envision Sprout in the next 10 years?

To be honest, with the pace that technology is changing, it's hard to predictably say where we're going to be in 10 years. I think that's a really good thing. With AI, fintech, even Blockchain, they all can have a fundamental impact on the industry. However, we are definitely aiming to be in the Fintech-embedded SaaS category in the Philippines, and potentially in Southeast Asia. We recognize the significant impact of SaaS in our daily work and understand that many are already utilizing SaaS solutions. Our goal is to elevate the SaaS experience to new heights and make a profound impact across various industries.

What are some of Sprout’s Solutions greatest achievements and milestones so far?      

We’re the largest homegrown B2B SaaS company in the Philippines. I will say that's a win. That's a milestone only because it reflects our North Star: To impact the life of every Filipino by improving business in the Philippines. The fact that we're now arguably the largest in the country means that we're starting to realize that mission a little bit more than we did before. These things, including revenue and your position in the market, are really vanity metrics. However, what's meaningful is the impact that you're having on the country. Those vanity metrics are just really a reflection of that. This is what I'm most proud of: the transition that Sprout has made from being a very narrow kind of solution to becoming a platform or an ecosystem of products that companies can use to enrich the lives of their employees. It's an awesome thing for the country, for employees in the Philippines. The fact that we can deliver that makes me incredibly proud.

What do you expect from Mynavi Corporation as your investor? 

Mynavi has been supportive of Sprout for many years now. Shota has been in our office and has been talking, working, and sharing ideas with us even long before we obtained Series B funding. I’m ecstatic to now just have a deeper relationship. I know that they have a fantastic company in Japan. There’s an exciting Japanese market here and there's exciting investments coming from Japan into the Philippines. I know that Mynavi will support us in these kinds of areas and I'm incredibly excited for it.

Patrick Gentry is the CEO and Co-Founder of Sprout Solutions. His primary task is to build relationships with clients and investors, manage the company's finances, oversee product development, and ensure that the company maintains a strong culture and value system. As a prominent scale-up in the field of human resources technology, Sprout has recently completed its Series B funding round with the participation of MyNavi Corporation as an investor.

Shota Sakurai

Mynavi Corporation

Chief Representative in Southeast Asia

Mynavi Corporation is a leading Japanese staffing and media communications company. Mynavi Corporation has a strong presence in Japan, with over 900 branches throughout the country, The company has expanded its operations to Southeast Asia and includes a wide range of services, including recruitment services, job fairs, and media communications. They operate a job search website that connects job seekers with potential employers, as well as a variety of media platforms that provide information and resources related to career development and job search. Mynavi has currently invested in Sprout Solutions to revolutionize the HR services industry in the country. Sprout is committed to helping individuals and businesses achieve their goals by providing innovative  and effective solutions to their staffing and communication needs. With that, why don’t you join me in learning more about Mynavi Corporation with its Chief Representative in Southeast Asia, Shota Sakurai.    

What is Mynavi Corporation and what makes it stand out from other staffing and media communications companies?

Mynavi is one of the leading HR services and information media companies in Japan. We run businesses like HL media and recently HL tech. We are also starting to focus on the businesses of BPO, health, and education as well. Recently, we have been very aggressive in expanding overseas, mainly Southeast Asia. 

Could you talk about the employment trends of HR in the Philippines? How is it different from the other Southeast Asian countries?    

As you may know, I'm in charge of the Philippines. The population is increasing in the Philippines and will be increasing for a while. This is a great opportunity for this country. Some startups, including sprout solutions, have been recently emerging as disruptors to the industry. These are really good factors for us. At the same time however, there are only a few new HR services. For example, in Indonesia, the labor solution is getting popular. Not only here, but in Singapore and Vietnam as well. This is getting popular in those countries but not in the Philippines. This will come soon to the Philippines, but quite like  later than other countries. I also feel that the unemployment rate of the younger generation is still high in the Philippines. This is one of the biggest problems in the Philippines. This is why Mynavi is considering building new services. Mynavi is looking for opportunities that can create new employment for Filipinos.

What is your vision and mission for MyNavi?

Our purpose is to create a world that envisions the future by engaging individual potentials. We set up this purpose last April. In the Philippines, we are also focusing on this purpose such as doing activities to follow this vision and mission.

As one of the leading staffing and media communications companies in Japan, how do you see the future of HR in the Philippines in terms of digitizing HR processes?

At this moment, for the Philippines, they don't realize how much digitalization works well.  That’s why, unfortunately, there are a significant number of people who are looking for jobs. This is why they can use people instead of technology. Of course this is good, we don't have to digitalize to use people. However, in the case of this country, it cannot achieve digitalization. That’s why I'm considering that first, we have to try to spread or try to set up the opportunities of how those services or new digital products work well for work. An example would be Sprout and how it sets up new opportunities. At the same time, we have to consider creating an environment where new services will emerge. We invested into Sprout Solutions and we are considering how Sprout can make new HR services through our investment instead of Mynavi.

Why did MyNavi invest in Sprout Solutions over other HR technology startups? What kind of immense potential did you see in Sprout? What factors did you look for when investing in Sprout Solutions?    

Sprout Solutions must be a leading HR services player. We have confidence about this. At the same time in the future, we are considering connecting them with our network and assets related to HR, fintech, or related to Japan. We are a big company, so we have a lot of assets we can provide for them. Their financial situation was very attractive for us. Additionally, their performance will influence other startups in the Philippines. In the future, Mynavi is considering building the HR ecosystem in the Philippines, which covers end to end solutions, recruitment to the end of their management, for example. We would like to contribute to the working environment in the Philippines. As for Sprout, we would like to make a deeper and more intimate relationship in the future.

Shota Sakurai is Chief Representative of the Philippines of Mynavi Corporation. As the Representative, Shota’s primary task is to develop and implement business strategies that align with the company's overall goals while also addressing the unique needs and challenges of the Philippine’s HR market. This involves building relationships with clients, identifying new business opportunities, managing the company's finances, and overseeing the work of local teams. He also serves as a key representative of the company in the region, and engages in public relations activities and industry events to promote the company and its services. In line with the company’s objectives, Mynavi invested in Sprout Solutions to support the digitization of the HR industry in the Philippines. Overall, Shota is responsible for overseeing the company's operations and growth strategy in the Philippines.

Visit www.techshake.asia if you would like to know and connect more with Sprout Solutions and Mynavi Corporation.