BetterPlace Safety Solutions Pvt Ltd, an online platform focused on the blue-collar workforce has raised $3 Mn in a Series-A funding round from 3one4 Capital, and existing investors Venture Highway and Unitus Ventures.
The Bengaluru-based startup will use the proceeds to expand into skilling, compliance and fintech services and to consolidate its position as a single platform for the country’s semi-formal workforce.
Pravin Agarwala, co-founder and CEO BetterPlace stated, “We are focused on addressing the $12 Bn blue-collar ecosystem in the country. A significant part of the funds will be utilized to strengthen the existing ecosystem using frictionless solutions powered by AI and machine learning.”
Founded in 2015, the startup provides a digital way of managing the lifecycle of a blue-collar worker from onboarding and background verification, to training, assessment and financial services. It provides services including, KYC-based digital employee onboarding services, digitizing employee records, background verification services, skill development training and assessment, and attendance management services, among others.
BetterPlace has previously raised $1 Mn in a seed funding round led by Unitus Ventures in 2016. As per the startup’s claims, it has helped employers hire over 1.5 million people with the right skills and credentials. It also claims to have helped 1.2 million people become credit-ready and is adding 8,000 new individuals every day.
Around 450 million people working in India’s informal economy in various roles ranging from security guards to drivers, plumbers, electricians to household helps and construction workers, However moving to formal jobs becomes an issue for them because of the lack of data and the trust deficit that is associated with their segment.
The startup is clocking an annual recurring revenue (ARR) of $4 Mn with monthly growth rates of 13-15%. It is aiming to cross $15 Mn in net revenue over the next 18 months. Interestingly, last year LinkedIn also entered the blue-collar job market and partnered with IL&FS Skills Development, to help upskill the blue-collar workers and job seekers in the country and improve their employability.