Smartstaff, a blue-collar staffing platform, announced that it has raised $6.2 million in funding. The investment was led by Nexus Venture Partners, Arkam Ventures, Blume Ventures, and Alteria Capital. This funding round included $500,000 of debt funding from Alteria Capital. Smartstaff offers recruitment, workforce management, and retention solutions for mid-sized and large manufacturing enterprises. The company aims to disrupt the way manufacturing companies hire and manage their workers with its game-changing platform.
Since its inception in 2021, Smartstaff has recruited, trained, and employed 11,000 workers across 50 manufacturers. The platform has helped workers collectively earn over Rs 100 crore in wages. The company’s focus on improving productivity and reducing absenteeism has resulted in a 20-30% increase in output per worker for the manufacturers it serves.
Sameer Brij Verma, director of Nexus Venture Partners, expressed excitement about doubling down on the investment in Smartstaff. He believes that the company’s workforce management and blue-collar sourcing platform has the potential to disrupt the industry.
Dave, the founder and CEO of Smartstaff, revealed that the majority of the company’s business, about 70%, comes from the textiles industry. The warehousing and consumer sectors contribute about 15-20%, while the metal fabrications industry, which Smartstaff recently entered, accounts for 8-10%. Some of Smartstaff’s notable clients include Raymonds, Cotton World, SuperDry, and Marks & Spencers.
With the fresh capital, Smartstaff plans to expand into new geographies beyond its core South Indian markets. The company also intends to invest in strategic projects, including entering new industries, and upskill its workforce.
Smartstaff offers a range of services, such as payroll management, compliance, instant salary advance, loans, leave bonuses, live chat support, an emergency SOS feature, and a dedicated helpline for female workers. The platform aims to provide comprehensive solutions to the challenges faced by workers in the manufacturing industry.
Smartstaff was founded in February 2021 by Arpit Dave, Viral Chhajer, Gnanesh Chilukuri, and Aravind Reddy. This is the second venture for the team, who previously sold their startup Runnr to Zomato in 2018. Blume Ventures and Nexus Venture Partners were early backers of Runnr.
Bala Srinivasa, managing director of Arkam Ventures, praised Smartstaff for leveraging the digital connectivity of Indian manufacturing workers and addressing the challenges of worker productivity and attrition. He believes that Smartstaff’s platform has the potential to make a significant impact in the industry.
In conclusion, Smartstaff has raised $6.2 million in funding to further develop its blue-collar staffing platform. With a focus on recruitment, workforce management, and retention, the company aims to revolutionize the way manufacturing companies hire and manage their workers. Through its services, Smartstaff has already made a positive impact by improving productivity and reducing absenteeism for manufacturers. With this latest round of funding, Smartstaff plans to expand its reach, invest in strategic initiatives, and equip the workforce with new skills.
