Phenom CEO Mahe Bayireddi Details Acquisition Strategy After Included AI Purchase

Philadelphia-based HR technology firm Phenom has further expanded its portfolio with the acquisition of Seattle-based AI people analytics startup Included, marking the company’s seventh such purchase. This latest move underscores Phenom's aggressive growth strategy in an evolving HR tech landscape, as detailed by CEO and cofounder Mahe Bayireddi in an interview with Technical.ly.

Phenom's Strategic Calculus Behind Acquisitions

According to Bayireddi, Phenom employs a rigorous three-pronged criteria when evaluating potential acquisitions. The company prioritizes the strength of a target firm’s underlying infrastructure, its ability to add vertical depth within specific industries, and its potential to enhance operational efficiency. This systematic approach ensures that each acquisition contributes meaningfully to Phenom's existing capabilities and market position. The integration of Included, an agentic AI platform, is a prime example of this strategy in action, enhancing Phenom's offerings in people analytics.

Embracing Agentic AI for Workforce Insights

Included AI specializes in people analytics, consolidating data related to talent acquisition, onboarding, and various HR operations, which are often dispersed across multiple dashboards. Its distinctive feature is the use of agentic AI, a trending technology where AI systems can independently make decisions and execute tasks based on accumulated experience. Bayireddi highlighted that Included's platform allows companies to analyze workforce data, pinpoint issues, and receive actionable suggestions for resolution. "Included AI brings this in an agentic format of people analytics, where they can take action on every problem they have within the workforce insights," Bayireddi told Technical.ly.

A key factor in Phenom’s interest in Included was its proprietary algorithms and its utilization of a canonical model — a data framework designed for seamless communication across diverse formats. This, combined with Included's application of agentic AI and natural language processing, was deemed a perfect fit for Phenom’s existing infrastructure, promising to accelerate client work and deepen analytical capabilities.

A Prolific Acquisition Streak

The acquisition of Included marks Phenom’s seventh company purchased, and its third in the last 18 months, indicating a rapid expansion phase. Prior to Included, Phenom acquired talent platform EDGE in February and employee data platform Tydy in summer 2024 (as reported in the source content, 2024 is used even though it is in the future). Other significant acquisitions include employee experience platform Tandemploy in 2022. Between 2020 and 2021, Phenom also integrated AI scheduling platform My Ally, recruitment tool Endouble, and video tech company Talentcube, further demonstrating its commitment to building a comprehensive HR tech ecosystem. This aggressive acquisition strategy follows a significant $100 million Series D fundraising round in 2021, which valued the company at $1.4 billion, as reported by Forbes at the time.

Philadelphia's Digital Literacy Push

In other local news, the City of Philadelphia’s Office of Innovation and Technology (OIT) has recently launched the Power Up Tech Corps, a new volunteer program aimed at boosting digital literacy among residents. The initiative seeks volunteers to assist digital navigators in community spaces such as recreation centers and libraries, where they will help residents access technology and vital digital resources. Tasks for volunteers may include monitoring computer labs or teaching digital skills classes, reinforcing OIT's commitment to bridging the digital divide.

Melissa Scott, Chief Information Officer at OIT, emphasized the program's importance: “This program reinforces OIT’s commitment to advancing digital equity in our city. These amazing volunteers will help OIT continue to deliver vital digital skills training to residents most in need — ensuring that no one is left behind in this more digitally connected world.” The Power Up Tech Corps plans to train and place approximately 30 volunteers this year, with both youth (ages 14-17) and adult cohorts. Applications for the program are currently open, offering a direct opportunity for community involvement in advancing digital equity across Philadelphia, as highlighted by Technical.ly.