Leveraging digital solutions to streamline processes
Through its proprietary employer-of-record technology and infrastructure, Multiplier can reduce a six-month onboarding process to ‘just three clicks’
FOR Sagar Khatri, co-founder, and CEO of Multiplier, a fully self-service global employment solutions platform, the eureka moment struck when he was doing business development and international operations for a global flexible housing company.
Then, among his many responsibilities was onboarding talent.
Finding the right talent for a global company was challenging enough, but onboarding employees from different countries – all at the same time - made it an even more complicated and time-consuming process.
Sagar said that it can take six months to a year to onboard employees, due to the myriad issues, ranging from local compliance and labour contracts to reference and background checks.
He added: “In my mind, businesses are global. There must be a better way to do this. For the individual talent, no matter where they’re born, they must have access to any job in any market; likewise, regardless of where your company is based, you must be able to onboard any talent anywhere.”
Determined that he could do better, he left the co-living company and started Multiplier with co-founders Vamsi Krishna and Amritpal Singh, who are the group’s chief product officer and commercial director, respectively.
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Sagar and the team worked on a proof of concept in 2020, before signing up five to 10 customers with a minimum viable product by April 2021. Since then, the team has multiplied the group’s success – today, Multiplier has 450 employees in close to 40 markets. It has also onboarded talents for around 1,500 clients in 150 countries, all in full compliance with local laws.
What accounted for the multiplier effect?
Sagar drew on his previous experience in identifying the pain points as well as the key success factors in onboarding employees rapidly and compliantly in any market.
This resulted in the development of Multiplier’s proprietary employer-of-record technology and infrastructure, which can reduce a six-month onboarding process to “just three clicks”, he said.
The visual of a duck gliding effortlessly above water but paddling hard underwater is perhaps an apt description of how the Multiplier platform works.
Conventionally, employers “paddle furiously” to onboard new employees as they navigate different regulatory and legal requirements in various markets over long periods of time. With Multiplier, all they do is upload the required documents and insert their digital signatures – the platform does the “paddling” behind the scenes.
Sagar said: “With Multiplier, you don’t need to open a legal entity. You don’t need to open a bank account. You don’t need a payroll person. You don’t need a HR person. You don’t need to have paid-up capital. You don’t need a legal person. You don’t need a corporate secretary. As the employment of record, we take care of all of that. You just tell us who you want to hire, and it’ll be done for you within the same day, if not within a few hours.”
Ng Li Lian, head of mid-market enterprise at HSBC Singapore, explained that HSBC helped Multiplier streamline the account opening process for the latter’s locally incorporated subsidiaries in close to 40 key markets.
Through remote account opening and digital e-signatures, HSBC centralised and simplified the account opening process, reducing the need for physical forms and in-person wet-ink signings.
But, like any startup, Multiplier had its share of growing pains, and some of its biggest challenges related to financial and banking services, including:
- Account opening and global visibility: Multiplier’s clients needed a unified, global view of all accounts in multiple jurisdictions to manage financial operations across regions.
- Timely payroll collections: Multiplier’s business model required smooth and timely collections from its customers, for the company to make time-sensitive payroll payments.
- Real-time payment status visibility: This is a key operational requirement not just for Multiplier’s internal operations but also for its clients to make informed decisions.
- Effective foreign exchange (FX) risk management: With payments flowing in and out in multiple currencies across diverse markets, managing FX risks is crucial, especially since Multiplier processes “hundreds of millions of dollars in salaries” in six major currencies.
Sagar said: “We were a young company, and not a lot of big banks wanted to partner with us. I don’t think we were an attractive customer then. But HSBC took a chance on us in collaborating with us, and today, the relationship has materialised really well for both parties. As part of our infrastructure, we need a bank account in each country that we operate in. I cannot pay an Indonesian from a Singapore bank account. That’s why we collaborated with HSBC, as they are present in every market that we operate in.”
He cited HSBCnet as an example of how the bank’s global solutions have helped Multiplier. HSBCnet is a global banking platform that provides Multiplier with an easy-to-use, customisable and consolidated interface. The platform also provides a comprehensive range of global cash management, trade and supply chain, securities and market solutions.
The bank’s range of multiple currencies and FX hedging solutions also helped Multiplier to manage currency fluctuations and international payments across diverse markets. HSBC further provided Multiplier with a credit limit to support its cash flow management through extended payment terms, and aided the company in simplifying its monthly expense reporting, improving its budgeting and cash flow planning.
HSBC’s Ng said: “As Multiplier and HSBC continue to expand their collaboration into additional markets, such as the Maldives, Luxembourg, Chile and Ireland, Multiplier’s clients benefit from complete visibility and control over their accounts globally, aligning perfectly with the group’s mission to simplify international business operations and eliminate boundaries. This partnership has significantly contributed to Multiplier’s ability to overcome its key business challenges and thrive in the global business landscape.”
What to multiply next?
In March 2022, Multiplier raised its series B of US$60 million, led by Tiger Global, Sequoia India Capital (now known as Peak XV Capital), and DST Global Partners. This led the company to a valuation of US$400 million. Multiplier’s total capital since its April 2020 founding is US$77.2 million.
Sagar said that Multiplier will continue to invest heavily in product development, international expansion, and securing meaningful partnerships.
For example, employers can now create multilingual employment contracts with minimum intervention in a matter of minutes for most countries and offer employee stock ownership plans. Multiplier is also rolling out crypto payroll features so that businesses can pay freelancers with cryptocurrencies.
Multiplier is also the only firm in the industry that offers its clients locally competitive and customisable health insurance coverage at affordable prices. This helps companies reduce cost and increase value, by leaving out intermediaries, agents and brokers.
Sagar added: “We plan to continue to use HSBC’s extensive payments and banking infrastructure, as we scale Multiplier globally. With HSBC as our partner, we can go full steam ahead.”
HSBC’s Ng said: “In the face of these complex challenges, Multiplier’s story is one of resilience and innovation. The company demonstrated a commitment to finding creative solutions to each of these obstacles, and worked towards their vision of simplifying global expansion and international employment for businesses around the world. Having started the journey with them from day one, we are glad that HSBC has emerged as their preferred partner, continually collaborating with them to offer solutions that helped them mitigate obstacles and support their international ambitions.”
Here are some ways Multiplier has tapped on HSBC’s extensive global network and suite of solutions to overcome complex business challenges and thrive in the global business landscape.
- Global account openings: Uses HSBC’s remote and streamlined account opening process to centralise and simplify account opening in locally incorporated subsidiaries. Reduces need for physical forms and in-person signing.
- International payments and collections capabilities: Makes international payments and collections, with host-to-host connectivity for seamless payment processing and reporting. Direct debit allows for timely collection of funds ahead of the payroll payout date.
- FX Hedging solutions: Executes FX and international payments effectively across diverse markets while working with HSBC on tailor-made FX solutions to achieve risk management objectives.
- Client service team: Taps the bank’s client service team for swift help in managing payroll-related issues, to ensure swift troubleshooting and re-processing of any rejected payments.
- Corporate card programme: Enjoys extended payment terms for better cash flow management. This helps with monthly expense reporting and improves budgeting and cash flow planning.
- Payroll processing enhancement: Streamlines payroll processing for substantial time and cost savings with ongoing transition from file upload functionality, through HSBCnet, to host-to-host connectivity, allowing Multiplier to initiate payroll directly from their ERP system.
- Global digital platforms: Taps HSBC’s global digital platforms to manage digital marketing costs across markets efficiently and transparently, to streamline cost consolidation and allocation, and optimise marketing strategies.
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