Vahan bags $8 million funding led by Khosla Ventures


Vahan, a recruitment platform for blue-collar workers, has raised $8 million in its Series A round, led by existing investor Khosla Ventures.

Airtel, Shakti VC, Pioneer Fund (Y Combinator alumni fund), Spike Ventures (Stanford University alumni fund), Vijay Shekhar Sharma (CEO, Paytm), Guru Gowrappan (Group CEO, Verizon Media and former Global MD, Alibaba), Kevin Shannon (former CFO, Harvard Management Company) and others also participated in the round.

Vahan has previously been backed by marquee names such as Y Combinator, Khosla Ventures, Founders Fund, Airtel and many former and current Google and Flipkart executives.

The funding will help the company further scale up its recruitment business and build new product offerings, a senior company executive said.

Founded in 2016 by Madhav Krishna, Vahan is a technology-driven platform that helps blue-collar workers find jobs and employers, the right candidate.

“We have grown 10x during the pandemic, from placing 600-700 people each month to around 7,000 now,” Krishna told ET.

ALSO READ TECH NEWSLETTER OF THE DAY

Resignation at Zomato; India, Singapore tie-up on payments

In March, Zomato CEO Deepinder Goyal announced the launch of the company’s nutrition business. But things didn’t go to plan and the company shut down the vertical on Monday. Now, the cofounder who was tasked with the launch has resigned.


Read Now



The startup has built tools, including an AI-driven bot on instant messaging platform WhatsApp, that are used to recruit workers at large scale and save blue-collar workers from exploitation at the hands of middlemen, the company said.

Vahan’s customers include leading gig-economy companies such as Zomato, Uber, Flipkart, Swiggy, Rapido, Grofers, Dunzo and Shadowfax.

See also  Apple Pay 'Express Transit' mode arrives in London, meaning iPhones can be pressed straight onto Tube payment machines

“Through our machine learning-based technology, we are able to reduce worker attrition — a problem that plagues most employers that hire blue-collar workers — and increase overall worker productivity,” Krishna added.

India has over 250 million blue-collar workers. Due to the strong tailwind from the Covid-19 pandemic, the highest demand for blue-collar workers is expected from the logistics and e-commerce sectors as building efficient delivery channels is important for internet businesses. Employers in this segment hire blue-collar workers under a flexi-work or “gig” model.

According to a report by industry association Assocham, India’s gig sector is expected to grow at a Compounded Annual Growth Rate of 17% to $455 billion by 2024 and has the potential to grow at least 2x compared to pre-pandemic estimates.

“The blue-collar worker recruitment opportunity in India is large and growing, and Vahan’s ability to leverage technology in building value for both workers and employers at scale is exciting,” said Vinod Khosla, founder, Khosla Ventures.



READ SOURCE

LEAVE A REPLY

Please enter your comment!
Please enter your name here