1 min read.Updated: 28 Jul 2021, 03:54 PM ISTLivemint
The funds will be used to expand the engineering team, invest in building new features and functionality, and scale up operations
New Delhi: Bandhoo that works in the construction sector jobs and supply chain has raised $1.1 million in funding from early-stage venture capital firm Unitus Ventures and others.
Founded in February 2020, the startup has about 6,500 SME construction contractors and more than 35,000 construction workers on board in less than 18 months. With this, Unitus Ventures said it has completed its 12th investment in the job-tech sector, a preferred segment for the VC fund.
Besides Unitus, Bharat Innovation Fund and other angel investors too participated in this round of funding. The investors said by working closely with “building-material suppliers, and construction workers, Bandhoo is set to make the labor market (in that segment) more transparent".
“The fragmentation and opacity of the construction sector results in the loss of opportunity, time and revenues for all stakeholders. To enhance the overall productivity of construction and reduce delays and cost overruns, Bandhoo brings transparency and ease of access across this value chain through mobile-first technology that connects builders and infrastructure companies to SME contractors, and SME contractors to migrant construction workers based on availability and location," said Prashant Gupta, founder and chief executive of the start-up.
Gupta said the funds will be used to expand the engineering team, invest in building new features and functionality, and scale up operations. “We aim to on-board several large real estates and infrastructure companies, about 25,000 SME construction contractors and more than 150,000 construction workers by 2022–23," he said.
“Construction workers form the backbone of the Indian economy. Bandhoo delivers impact at scale for this segment of workers and enhances the productivity and business results of SME’s by connecting them with workers and large builders and contractors alike," said Surya Mantha, senior partner at Unitus Ventures.
Rahil Rangwala, director, Michael & Susan Dell Foundation said the construction sector in India is the second-largest employer with 60-70 million workers. Bringing these workers and business owners under a formalised, tech-first setup is crucial to create sustained impact in their lives and the economy eventually. “Ventures like Bandhoo are a catalyst to this new growth, engaging migrant workers, contractors, and semi-skilled workers," said Rangwala.