Workstream Raises Additional $60M, Extending its Series B to $108M
Workstream announced on September 29, 2022 it has extended its Series B funding round with an additional close of $60 million, bringing the total Series B financing to $108 million. More than two dozen investors are participating in the oversubscribed extension round, including both institutional funds and angel investors.
Led by Hans Tung, managing partner of GGV Capital, with strong participation from new and existing investors, notably Founders Fund, Coatue, BOND, Basis Set Ventures, CRV, WiL and Soma Capital. The financing enables Workstream to double down on its mission of serving the deskless workforce, which continues to flourish post-COVID and the Great Resignation. More than 170 of the top quick-service restaurant (QSR) brands in the world, including Burger King, Dairy Queen and Jimmy John’s, along with leading companies outside of QSR, such as Marriott International, Ace Hardware, UPS and European Wax Center, are already finding success with Workstream’s platform.
“Workstream has seen tremendous momentum in the last year,” said Tung. “We’re excited to see Workstream continue to expand into new verticals, in particular the retail sector, which was profoundly impacted by Covid. Sixty percent of the U.S. workforce does not sit at a desk to do their job, and we’re delighted to see Workstream continue to build technology to support this group.”
The funding and the addition of new investors with strategic industry experience will help the company expand further into new and current verticals in the retail, hospitality, healthcare, warehousing and automotive sectors. The funding will also enable Workstream to boost its R&D investment to extend its platform offering beyond its Hiring and, recently launched, Employee Onboarding products.
“With Workstream’s Hiring product, we’ve reduced our application to hire timeline down to about three days, which is fantastic for us,” said Amy Parman, Director of Training & Recruiting at Taziki’s Mediterranean Cafe. “We saw a high this year of a 71% show rate for interviews, which is outstanding. Also, the Onboarding product has helped smooth out our applicant and manager experiences, by keeping everything in one place. There is really nothing that the employee has to provide, sign or complete outside of Workstream Onboarding.”
The demand for flexible work hours – and part-time work – is on the rise as workers increasingly look to control the hours they are on the job, whether to pursue other interests or care for their children or elderly parents. The Labor Department’s August jobs report shows that 20.3 million people worked part-time by choice, compared to 4.1 million part-time workers looking for full-time positions. The report also shows that despite rumblings of a recession, the overall job market remains strong. The U.S. economy added over 315,000 spots, led by hiring in professional services, healthcare, leisure and hospitality – all industries with large deskless workforces.
“With little easing of labor shortages, fierce competition for deskless workers and great demand to fill open spots at lightning speed, the need for our platform is increasing exponentially,” said Desmond Lim, co-founder and CEO of Workstream. “We’ve grown 10x in the last 18 months and now serve more than 4,000 customers across 24,000 locations. This latest round of investment, coupled with the expertise of our strategic investors, will enable us to expand into new verticals and build new tools for the deskless worker, in support of the company’s future growth.”
Workstream’s mobile-first hiring and onboarding platform automates many of the recruiting and onboarding processes that can slow down hiring. It helps businesses with large deskless workforces fill open positions quickly. The funding round extension clearly demonstrates the investment community’s belief in Workstream’s platform and business model.
To best serve the deskless workforce in these new verticals, Workstream has partnered with strategic investors and industry veterans, including:
- GGV Capital, with retail and e-commerce investments, such as StockX and Bowery Farming
- Peterson Ventures, with retail and e-commerce investments, such as such as Allbirds, Bonobos and Cotopaxi
- Soma Capital, with investments in hospitality, among a variety of other industries, and owner of the Sacramento Kings
- Aglae Ventures, the technology investment firm backed by Bernard Arnault, Chairman and CEO of LVMH Moët Hennessy – Louis Vuitton
- Wheelhouse Capital, with extensive experience in logistics and the airline industry
- World Innovation Lab (WiL), a US- and Japan-based fund backed by a strong network of corporates in multiple sectors spanning consumer & retail, automotive, manufacturing and logistics, with investments in healthcare and transportation
- Nationwide Ventures, the venture capital arm of Nationwide Insurance Company of America, serves hundreds of thousands of businesses across retail, hospitality, warehousing, auto, and restaurants
- Gold House Ventures, with a strong network across hospitality, retail and restaurant investments
- Bracken Darrell, CEO of Logitech, a multinational leader in logistics and manufacturing
Alongside Bracken Darrell, additional angel investors include Arash Ferdowsi, Dropbox Co-founder; Claire Hughes Johnson, Stripe former COO; Mathilde Collin, Front CEO; Jack Altman, Lattice Co-founder & CEO; Jim Jensen, Ceridian former SVP of HCM Innovation; Oliver Jay, Asana former CRO; and Dawn Dobras, Gap Inc former SVP.