Blue-collar HRMS start-up BetterPlace has acquired on-demand blue-collared gig workforce management platform OkayGo for an undisclosed sum with a plan to introduce a marketplace model for India's gig-workforce.
The frontline workforce management space in India is seeing some consolidation now after several start-ups have come up in the blue-collar space owing to the sheer volume of addressable market given that a lion’s share of the Indian workforce falls under the blue-collar category.
Founders and experts attribute the increased adoption of technology by blue-collar workers to the cheap data and smartphone revolution of 2017 which put internet into the palms of millions in the country, and the pandemic which changed how people used their smartphones beyond just entertainment and for business and payments.
This is the fourth acquisition for the Bengaluru-based BetterPlace so far after it acquired Oust Labs, Aasaanjobs and Waah Jobs in October last year. The start-up says the marketplace model has the potential to reduce hiring costs for enterprises by 20 per cent and increase daily earnings of gig-workers by 25-30 per cent.
BetterPlace provides HRMS services to over 250 large enterprises. "One major ask from all these enterprises has been on the workforce fulfillment side, they want to be able to easily access pre-skilled workforce. We enable enterprises on this front through our BetterPlace Select platform that provides pre-skilled contractual workers to enterprises. The OkayGo platform will help us strengthen this platform by helping organizations variable part of their fixed costs," Pravin Agarwala, CEO and Co-founder at BetterPlace, told Business Today.
This model can impact a total of 90 million gig-workers in the near future and around 35,000 large enterprises can take advantage of this model, he added.
BetterPlace has raised a total of $38 million in funding over four rounds. It is funded by 11 investors, with Unitus Ventures and CDC Group being its most recent investors.
OkayGo, based out of Gurgaon in Haryana, describes itself as Uber for hiring full time, part time and gig workers instantly. It’s a tech-driven staffing provider of blue and grey collared workers such as kitchen and service staff, tele callers, event professionals, sales and marketing professionals, operations associates and e-commerce delivery executives for businesses in the hospitality, F&B, event management, warehouses, BPO and other industries.
"Over the last 2 years we have focused on the logistics space. Through our partnership with Betterplace we will be able to leverage the OkayGo technology to serve many other verticals. BetterPlace, serving more than 250 enterprises, will enable us to take the power of gig across industries and reach out to millions of workers, " Saurav Chawla, co-founder at OkayGo, told Business Today.
The founders will continue to play a role post the acquisition and are expected to become a part of the senior leadership group at BetterPlace, the team said. OkayGo has raised a total of $500,000 in funding over two rounds, with their latest funding raised in Nov 2020 from a Seed round.
The current workforce of OkayGo will be integrated completely into BetterPlace. This process will take 9-12 months, the teams said.
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