Gurugram-based on-demand staffing startup Gigforce has raised $3 Mn (around INR 22 Cr) in Pre-Series A funding led by Endiya Partners. In addition, existing investors Unitus Ventures and key angels also participated in the round.
In the last year, the startup claims to have an annual run rate (ARR) of INR 25 Cr and is seeing a 2x growth on a quarter-on-quarter (QoQ) basis. With a considerable surge expected in demand, the staffing solution startup plans to grow at a rapid clip to cross INR 100 Cr ARR.
The new funds will be invested in strengthening its team and technology and scaling pan-India in the next few quarters, it said.
Founded in 2019 by Chirag Mittal, Parag Modi and Anirudh Syal, Gigforce uses deep data and tech-driven capabilities to optimally allocate skilled gigers to the right gigs and manage rewards, recognition, behaviour, payouts and benefits.
“The market is underserved today because of the lack of suitable technology to manage scale. India’s top five staffing companies together just about manage a workforce of one million. This is set to change with strong tailwinds, including the proliferation of inexpensive smartphones, ubiquitous internet access for blue and grey collar workers, maturing technology platforms, simplification of labour codes, and the huge growth trajectory India will witness in the next ten years,” elaborated Mittal.
Gigforce currently focuses on the logistics sector and claims to have more than 20 enterprise clients across e-commerce, food, and grocery deliveries.
It provides end-to-end services, from sourcing, onboarding, e-KYC, rostering, tracking to payouts. Some of its existing customers include Delhivery, Flipkart, BigBasket, FreshToHome and Grab.
The startup plans on scaling its platform and business to manage the entire lifecycle of over one million gigers by 2025, with a targeted flow of over $1 Bn on the platform.
Gigforce also focuses on segments like electric vehicles (EVs), Original Equipment Manufacturers (OEMs) and operators. Its clients in the category include Zyngo, MoEVing, ETO Motors, Zypp Electric and others.
According to IBEF, based on a study conducted across 145 companies, 49% already have gig workers and 65% plan to increase the number of gig employees in the coming 2-5 years.
Last year, ASSOCHAM projected that India’s gig economy would rise at a CAGR of 17% to $455 billion by 2023. The market is dominated by companies, such as TeamLease & Quess Corp, and startups like Hoopy, Awgin, among others.