BetterPlace gets $3 million funding from 3one4 Capital, others
BetterPlace Safety Solutions aims to use the funding to add new solutions to its portfolio of services and expand into new verticals
Bengaluru: BetterPlace Safety Solutions Pvt Ltd, an online platform that caters to the blue collar workforce, raised $3 million in a Series-A funding round from 3one4 Capital, and existing investors Venture Highway and Unitus Ventures.
With this funding, the Bengaluru-based start-up expects to add new solutions to its portfolio of services and expand into new verticals.
The company had raised $1 million in a seed funding round, which was led by Unitus Ventures, in early 2016. The latest Series-A funding round will help it expand into skilling, compliance and fintech services, to consolidate its position as a single platform for the country’s semi-formal workforce.
BetterPlace was founded in 2015 with the idea of providing a digital way of managing the lifecycle of a blue collar worker from on-boarding and background verification, to training, assessment and financial services. The company mainly works across blue collar-heavy sectors ranging from private security to facility management and on-demand services to retail.
“We are focused on addressing the $12 billion blue-collar ecosystem in the country. A significant part of the funds will be utilised to strengthen the existing ecosystem using frictionless solutions powered by AI and machine learning,” said Pravin Agarwala, co-founder and chief executive officer of BetterPlace.
Around 450 million people are working in India’s informal economy in various roles ranging from security guards to drivers, plumbers and electricians to household helps and construction workers. While they aspire to move to formal jobs, they are unable to do so because of the lack of data and the trust deficit that is associated with their demographic, according to BetterPlace.
So far, the company has helped employers hire over 1.5 million people with the right skills and credentials. It has also helped 1.2 million people become credit-ready by using its proprietary trust-scoring algorithms and is adding 8,000 new individuals every day.
“We are bullish about the growing informal economy in India, with the need to impact crores of people. The best way for social transformation is when people at the bottom of the pyramid can move up to the formal economy. BetterPlace has made tremendous progress since our last round, and we want to continue to be part of this success story,” said Will Poole, co-founder and managing partner at Unitus Ventures.
BetterPlace is clocking an annual recurring revenue (ARR) of $4 million, with monthly growth rates of 13-15% propped by traction from the logistics, on-demand, IT-ITES, schools, facility management and private security verticals. It is likely to cross $15 million in net revenue over the next 18 months going by its current order book and projected growth.