Instawork Raises $60 Million in Funding

May 25, 2023 – San Francisco based Instawork, a platform for connecting businesses with skilled hourly workers, has raised $60 million in a series D funding round led by TCV. The round also included participation from new investors 9Yards Capital and Larry Fitzgerald Jr., as well as existing investors Benchmark, Spark Capital, Craft Ventures, and Greylock. With this new funding, Instawork intends to accelerate investment in its AI-powered mobile app and platform, which connects over 4 million skilled hourly workers with tens of thousands of businesses.

“We are excited to partner with TCV and our other new and existing investors to continue our mission of making work more flexible and rewarding for everyone,” said Sumir Meghani, co-founder and CEO of Instawork. “This funding will allow us to accelerate our investment in AI and machine learning, which will help us better match businesses with the skilled workers they need, and help workers find the shifts that fit their schedules and lives.”

Instawork has seen record growth in recent years. In the past two years, the company has grown 15x, and more than 2 million workers have joined the app in the past year. Instawork is now helping staff distribution centers for some of the country’s largest retailers, as well as the majority of sports stadiums across the U.S. and Canada. For businesses, Instawork provides an efficient way to find and hire skilled hourly workers. For workers, Instawork provides the flexibility to work when and where they want, and to earn extra money on their own terms.

“Instawork will invest in additional AI-driven capabilities to connect its partners with workers who both have the right skills to be successful and who reliably show up on time,” the company said. In addition, Instawork will be releasing new self-serve features, including user-friendly tools to post shifts in seconds, and custom, data-powered interfaces for easy workforce management.

“The current ways businesses access labor is fragmented, manual, and under penetrated by technology,” said Gautam Gupta, TCV general partner. “Similar to other category-defining technology companies with which TCV has partnered, we believe Instawork is dramatically changing its industry by using technology and data to connect businesses with the skilled workers they need.”

Investment Funding

Investors are pouring money into recruiting solutions businesses, especially those with a psychology and data science component. Here’s a look at some other recent funding deals secured by these companies from the Hunt Scanlon Media archives:

HR software start-up Rippling has raised $500 million in a new funding round initially intended to help customers make payroll in the aftermath of Silicon Valley Bank’s (SVB) collapse. The round, led by technology investor Greenoaks Capital, gave Rippling the same valuation of $11.25 billion it had clinched after its previous capital raise last year, the company said. Rippling announced in a March 17 blog post that it received a $500 million series E funding round. Putting the round together took less than three days and took place after the SVB collapse, according to the post. It also noted that it has moved its banking operations to JPMorgan Chase.

Glider AI, a Cupertino, CA-based skill intelligence platform provider, raised $10 million in series A funding. The round was led by Primera Capital. The company intends to use the funds to continue its expansion in contingent programs and permanent hiring, furthering the development of proprietary technology, and growing its global team. Founded in 2020 by Satish Kumar, Glider AI provides hiring solutions, including screening, assessments, coding/video interviews, and upskilling software to scale hiring talent for the enterprise, staffing firms, and MSPs.

ShiftKey, a Dallas-based healthcare recruiting company, has closed on a funding round sponsored by majority investor Lorient Capital, valuing the company in excess of $2 billion. Crunchbase News reported the round was for $300 million. Lorient’s investment was completed through a continuation vehicle that was led by the Ares Management Secondaries funds and Pantheon. Additional investors participating along with Lorient, Ares, and Pantheon include Clearlake Capital and Health Velocity Capital.

Chicago-headquartered referral recruiting service Hunt Club has raised $40 million Series B round co-led by WestCap and Sator Grove. The investment round follows Hunt Club’s $10 million Series A financing in October 2021, and will fuel the company’s national expansion, technology platform enhancements, and broaden its community of over 20,000 business leaders who help connect the most innovative companies to the world’s top candidates. “We’re reimagining the entire talent process. Top talent leaders are not only hard to find, but they are hard to reach – and traditional recruiting firms aren’t equipped to innovate for their customers,” said Nick Cromydas, co-founder and CEO of Hunt Club. “Our technology is bridging that gap, introducing a personalized approach to helping companies change the way they approach talent acquisition. Hunt Club is proud to partner with WestCap, a premier growth equity firm led by a team that has founded, invested in, and operated tech-enabled marketplaces such as Airbnb for over 20 years.”

Related: RefAssured Secures Funding

Contributed by Scott A. Scanlon, Editor-in-Chief; Dale M. Zupsansky, Managing Editor; and Stephen Sawicki, Managing Editor – Hunt Scanlon Media

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