Cologne-based talentsconnect, a provider of career site technology, has announced its acquisition of Leverkusen-based PitchYou, a startup focused on WhatsApp-based recruitment communication.
The acquisition is set to further talentsconnect’s position as a comprehensive direct-to-talent (D2T) recruiting platform, enabling businesses to enhance their applicant engagement through technology.
“We are looking forward to contributing our expertise to the D2T ecosystem,” said Gunnar Basner, co-founder of PitchYou. “Together with talentsconnect, we are using our technology to optimise the relationship between people and companies in the recruitment process. We want to meet the needs of our growing customer base with continuous innovation.”
Founded in 2013, talentsconnect has disrupted the talent-acquisition sector with its JobShop platform, which simplifies the job application process and increases applicant numbers by up to fourfold.
By acquiring PitchYou, established in 2020, talentsconnect is integrating WhatsApp-based communication into its offerings.
According to Statista, in Germany alone, WhatsApp is used by 71% of the population, making it a powerful tool for connecting employers and candidates – especially considering the gap between talent and employers due to factors such as language barriers or the friction to adopting unfamiliar communication channels.
The acquisition positions talentsconnect as a potential leader in AI-driven recruitment technology.
Amid Germany’s labour shortage—projected to reach 4.9 million workers by 2030, according to the organisational consultancy Korn Ferry—the demand for innovative and efficient hiring solutions has never been greater. This is further exasperated in Germany with the projected loss €598 billion in company revenue due to the lack of employees
According to talentsconnect, traditional recruitment approaches are proving insufficient, and the market has shifted in favour of job applicants. talentsconnect’s holistic approach, bolstered by PitchYou, aims to address this imbalance by streamlining recruitment cycles and reducing costs.
“When we got to know the PitchYou team, it was immediately clear to us that we are alike culturally, have very similar values, have international and innovative teams and, above all, we are equally ambitious. Perfect conditions for achieving great things together,” said Robin Sudermann, CEO of talentsconnect. “The acquisition of PitchYou GmbH is more than a business transaction—it is a strategic move to shape the future of talent acquisition. By combining our strengths and products, we are building the D2T ecosystem—even beyond our strong organic growth.”
Under the terms of the agreement, PitchYou GmbH will become a wholly owned subsidiary of talentsconnect AG. The two companies will merge operations while retaining their headquarters in Cologne and Leverkusen. Sudermann will oversee both businesses as Managing Director, with PitchYou’s co-founders, Tim Berg and Gunnar Basner, taking on pivotal roles within the group.
Currently, nearly 1,000 companies use the recruitment solutions of talentsconnect or PitchYou. With a shared goal of tripling turnover within three years, the company plans to focus on organic growth in the DACH region while exploring additional strategic acquisitions.
This will be aided by the projected growth of the the European HR tech market; which is expected to more than double by 2032, reaching a value of €8 billion.
The merger is already producing results. Jens Berger, Managing Director for Human Resources, Culture and Communication at Globus, said: “Since combining talentsconnect’s data-driven career site with PitchYou’s WhatsApp application for recruiting, we have reached significantly more candidates. This approach has already helped us to significantly reduce our talent acquisition costs. Around one in three WhatApp applications leads to us hiring.”
The deal will be formalised following talentsconnect’s Annual General Meeting on 12 December 2024.
Read the orginal article: https://www.eu-startups.com/2024/12/talentsconnect-taps-into-whatsapp-talent-pool-with-pitchyou-acquisition/
