Maplewood-based startup Engagedly Inc., which provides software aimed at helping companies manage their workforce, has expanded its technology with an acquisition.
Engagedly has acquired theEmployeeApp, which provides communications software designed for so-called “deskless” workers. Financial terms of the acquisition were not disclosed.
Founded in 2015, Engagedly provides software designed to help companies analyze and understand workforce performance, train and develop talent, and interact with and reward employees. Like Engagedly, theEmployeeApp’s software allows companies to interact with their employees, but focuses on “deskless workers” not based in offices, targeting employees in places like factories, hospitals and restaurants. Its software provides employees in the field access to a company intranet, communication tools and information and documents related to the company.
Engagedly co-founder and CEO Sri Chellappa said his company’s technology has been geared toward office-based employees. The addition of theEmployeeApp helps expand its capabilities to serve deskless employees, while also strengthening the ability of its technology to help employers serve other employees, especially as firms have adopted hybrid and remote work models.
“It still serves everybody else too,” Chellappa said.
Chellappa said that as companies have shifted to hybrid and remote work models, he believes they have struggled to effectively communicate internal changes and implement them. He said those could be changes around leadership or operational items such as new procedures.
“It is much harder to do when you can’t see the people in the same space and you can’t reinforce the change,” he said.
Engagedly had considered creating its own software to help human resources managers communicate and implement changes, but found such a tool with theEmployeeApp, Chellappa said.
There are plans to integrate theEmployeeApp into Engagedly’s existing software, Chellappa said. The acquisition adds about 100 new customers for Engagedly and includes clients like automakers Nissan and Honda. Chellappa said he believes theEmployeeApp’s focus on deskless workers will aid Engagedly’s existing clients, with a survey it completed finding that about a quarter of the Maplewood startup’s customers operate in the manufacturing, logistics, transportation or hospitality fields, which have a large percentage of deskless workers.
About a dozen employees and contractors from theEmployeeApp will join Engagedly through its acquisition, bringing its total employment to 155. While based in Maplewood, the majority of Engagedly’s workforce is based overseas. Engagedly, with its headquarters at 7420 Manchester Ave., has nine employees based in St. Louis.
Engagedly has grown rapidly since its launch, appearing on the 2023 Inc. 5000 list of the nation's fastest-growing private companies, with its revenue increasing 170% from 2019 to 2022. By adding to its technology and team, Chellappa said Engagedly aims to boost that growth percentage. He said the company could also expand through future acquisitions focused on human resources technology.
Engagedly has been backed financially by Aquiline Credit Opportunities, an arm of New York and London-based private investment firm Aquiline Capital Partners. Aquiline helped finance the acquisition of theEmployeeApp. Investment advisory firm Westgard Capital was an adviser on the deal, with Managing Principal Kenneth Chan joining Engagedly’s board of directors as an observer.
