Vahan.ai, an AI-powered recruitment platform for India’s massive blue-collar workforce, has raised $10 million (or roughly Rs 83 crore) in a Series B round funds round led by billionaire Vinod Khosla Khosla Enterprises.
It is worth noting that Vinod Khosla is one of Time magazine’s 100 most influential people in artificial intelligence in 2024.
The round also included participation from Y Combinator, US venture capital firm Gaingels and Vijay Shekhar Sharma (founder of Paytm), among others.
What does Vahan.ai do?
The Bengaluru-based startup operates an AI-powered recruitment platform for blue-collar workers, spanning food, grocery, express and e-commerce delivery sectors. The platform connects companies with the workforce needed to drive India’s growth.
Unlike others, it leverages artificial intelligence (AI) to streamline the hiring process for high-volume manual jobs.
Placed more than 500,000 workers
Vahan.ai claims that its platform has successfully placed over 500,000 workers across 480+ cities at leading companies such as Zomato, Swiggy, Flipkart, Zepto, Blinkit, Amazon, Rapido and Uber.
With more than 25,000 recruits per month, the startup said it significantly reduces recruiting costs and turnaround times, setting a new standard for how AI can revolutionize hiring processes and boost employment at scale.
“Every placement is more than just a job; it’s a step towards a more secure and hopeful future,” said Madhav Krishna, Founder and CEO of Vahan.ai.
Expansion to other sectors
The startup said the informal economy, particularly driven by the blue-collar workforce, has seen tremendous growth since the pandemic.
While India’s gig sector workforce grew at an estimated 13% annually in the early post-pandemic years, projections indicate that by 2032, over 90 million jobs will be in the gig sector, with services valued at over $250 billion, contributing approximately 1.25% to India’s GDP.
Vahan said the latest capital would be used to fuel its expansion plans in industries such as manufacturing and retail.
The startup mentioned that manufacturing is projected to grow from 15% of India’s GDP to over 25%, adding $320 billion in gross value added (GVA).
Meanwhile, the retail sector is expected to expand from $779 billion in 2019 to over $2 trillion by 2032, with e-commerce alone growing at an annual rate of 11.45% to reach $91 billion by 2029, and the FMCG sector is expected to be worth approximately $616 billion by 2027.
Investing in AI technology
To capitalize on these growth trends, Vahan.ai said it will also invest in advancing its AI technology.
The startup’s AI recruiter currently conducts interviews in English and Hindi, and plans to support eight major Indian languages and numerous dialects over the next year.
“We have come a long way from creating 600 jobs a month during the pandemic to creating 25,000 jobs a month today. Our impact has grown tenfold and we are excited to drive positive change and help the youth of Bharat find employment,” said Madhav Krishna, Founder and CEO.
“This funding will allow us to further leverage AI to offer these workers unprecedented growth opportunities and improve their career paths. Over time, we want to help more than one billion people find a livelihood.”
What did Vinod Khosla say about Vahan.ai?
Vinod Khosla, Founder, Khosla Ventures, said, “Vahan.ai has consistently demonstrated its commitment to leveraging AI in a way that goes beyond just technology – it’s about creating real-world impact. As an early backer, I have seen first-hand how their innovative approach is redefining recruitment for the blue-collar workforce in India.”
“AI has the power to shift paradigms and transform challenges into opportunities. Vahan.ai excels at not only reducing effort on repetitive tasks but at providing meaningful and scalable solutions that open doors for millions of people,” Khosla added.
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