Seek's (ASX:SEK) venture capital arm, Seek Growth Fund, has put its remaining stake in HR tech unicorn Employment Hero up for sale.
The announcement comes just one month after the two companies settled an acrimonious legal battle over anti-competitive conduct.
The relationship between the long-standing partners soured in 2023 when Employment Hero launched Swag, a consumer app that directly challenged Seek's core business by offering free job postings for small businesses.
The tension escalated into a federal lawsuit after Seek throttled Employment Hero’s data access, alleging policy violations.
While the lawsuit was abruptly dropped in January with a joint statement of resolution, the "co-opetition" has clearly reached its limit.
Despite the recent drama, Seek Growth Fund CEO Andrew Bassat described the startup—now valued at $2 billion—as a "standout investment."
Having first backed the company in 2017, Seek already pocketed $95 million from a partial stake sale to KKR last year.
Employment Hero CEO Ben Thompson struck a conciliatory tone, noting the company has surpassed $300 million in annual recurring revenue and is focused on international expansion.
The divestment arrives at a volatile time for Seek; the company recently slashed its valuation of the Chinese platform Zhaopin by $350 million and has seen its own shares dip 27% this year amid a broader tech sell-off.
At the time of reporting, Seek's share price was $16.56.