Vahan.ai, India’s leading AI-powered hiring platform for blue-collar workers, has secured undisclosed funding from Persol Group, a prominent HR services provider in the Asia-Pacific region based in Tokyo, Japan. This strategic partnership aligns with Persol Group’s focus on expanding its footprint in the Indian market, which is witnessing significant growth in its gig economy.
With this investment, the startup aims to scale its operations, focusing on emerging sectors like manufacturing and retail, and continue enhancing its cutting-edge AI technology to meet the evolving needs of employers and workers alike.
Founded in 2016, Vahan.ai utilizes cutting-edge AI-based chatbot technology that enables businesses to scale their blue-collar workforce through recruitment, payroll, or staffing. The company has facilitated 2.6 lakh job placements across 920 cities for companies like food tech majors Zomato and Swiggy, e-commerce platforms Flipkart and Amazon, and quick commerce players Zepto and Blinkit. Through its AI recruiter, the platform saved over 20,000 hours of human recruiter effort, significantly improving hiring efficiency for employers.
Madhav Krishna, CEO and Founder of Vahan.ai, commented on the recent development:
India’s gig economy is on the cusp of a remarkable transformation, with smaller cities and emerging sectors driving a surge in demand for gig workers. Quick commerce alone is expected to double its workforce needs in these regions, creating opportunities for millions of individuals to access jobs and improve their livelihoods. By combining our AI-driven solutions with Persol’s deep expertise in workforce management, we aim to scale our technology, expand into new sectors, and create a more inclusive and efficient employment ecosystem. This collaboration positions us to transform hiring practices and empower workers and employers as we work together to build Bharat.
The latest funding comes months after Vahan raised $10 million in a Series B round led by Khosla Ventures and participation from Y Combinator, American VC firm Gaingels, and Paytm’s Vijay Shekhar Sharma.
With this funding, Persol Group is expected to expand its footprint in India as the rising gig economy poses new opportunities and demands for hiring. According to Vahan, gig hiring in the quick commerce sector is expected to grow 60% this year, fuelled by the expansion of dark stores, the infusion of capital, and penetration into Tier II and III towns.
Shingo Ishida, Partner and Head of APAC Investment at Persol Group added:
We are thrilled to collaborate with Vahan.ai, whose innovative technology and advanced business operations, driven by deep market insights, align perfectly with our broader strategy in India. Vahan’s Master Agency Platform is designed to revolutionize talent acquisition and workforce management by leveraging AI-driven solutions. Through this partnership, the PERSOL Group will support the expansion of Vahan’s reach, helping businesses in India access skilled talent more efficiently.
Vahan.ai will also invest in developing its artificial intelligence technologies to capitalize on these expansion trends. Its AI Recruiter now conducts interviews in English and Hindi. Over the coming year, it plans to add support for eight main Indian languages and countless dialects, making the platform even more accessible and inclusive.
