- The Series B funding round is led by investor Khosla Ventures and also featuring investments from Y Combinator, American venture capital firm Gaingels and Paytm’s Vijay Shekhar Sharma
- The funds raised will be used to develop AI recruitment technology to support 8 major Indian languages
- With India’s blue-collar workers poised to drive 70% of India’s new job growth by 2030, Vahan.ai is leveraging Artificial Intelligence to bridge the access gap between employers and blue-collar workers.
Bengaluru, India, 19th September 2024 – Vahan.ai, an AI-powered recruitment platform for India’s massive blue-collar workforce, announced its Series B funding of USD 10 million. This funding comes from a consortium of esteemed investors, led by Khosla Ventures, founded by Vinod Khosla — one of Time Magazine’s Top 100 Most Influential People in Artificial Intelligence in 2024 — along with Y Combinator, US-based VC firm Gaingels, and Indian tech entrepreneur Vijay Shekhar Sharma, Founder of Paytm, amongst others.
Based in Bengaluru, Vahan.ai is at the forefront of empowering India’s blue-collar workforce through innovative AI solutions. Since its founding, the company has pioneered the use of AI in blue-collar recruitment, placing over 500,000 workers in more than 480 cities with leading companies such as Zomato, Swiggy, Flipkart, Zepto, Blinkit, Amazon, Rapido and Uber. With over 25,000 recruits each month, Vahan.ai significantly reduces costs and turnaround for recruitment, setting a new standard in how AI can revolutionise hiring processes and drive large-scale employment.
With approximately 81 million people in urban India living below the poverty line, the stakes are high. Many hardworking individuals struggle to find well-paying jobs beyond their limited networks, and for them, Vahan.ai offers more than just employment—it provides a lifeline. By helping over 500,000 individuals secure jobs, Vahan.ai has enabled these workers and their families to achieve greater stability, sending their children to school, accessing better healthcare, and securing daily necessities. This impact ripples through their communities, enhancing purchasing power and contributing to broader economic growth. “Each placement is more than a job; it’s a step towards a more secure and hopeful future.”, says Madhav Krishna, Founder and CEO of Vahan.ai.
As India moves towards Viksit Bharat@2047, Vahan.ai is committed to leveraging AI to unlock employment opportunities for India’s diverse demographic. The gig economy, particularly driven by the blue-collar workforce, has seen tremendous growth since the pandemic. While the gig workforce in India grew at an estimated 13% annually in the initial years post-pandemic, projections indicate that by 2032, over 90 million jobs will be in the gig sector, with the value of services exceeding USD 250 billion, contributing approximately 1.25% to India’s GDP.
This new funding represents a significant milestone for Vahan.ai, fueling its plans to expand into industries such as Manufacturing and Retail. Manufacturing, a key pillar of the Viksit Bharat@2047 vision, is projected to grow from 15% of India’s GDP to over 25%, adding USD 320 billion in gross value added (GVA). Meanwhile, the retail sector is expected to expand from USD 779 billion in 2019 to over USD 2 trillion by 2032, with e-commerce alone growing at an annual rate of 11.45% to reach USD 91 billion by 2029, and the FMCG sector expected to be worth approximately USD 616 billion by 2027.
To capitalise on these growth trends, Vahan.ai will also invest in advancing its AI technology. Currently, Vahan’s AI Recruiter conducts interviews in English and Hindi, with plans to support eight major Indian languages and numerous dialects within the next year, making the platform even more accessible and inclusive.
“We have come a long way from providing 600 jobs a month during the pandemic to 25,000 jobs a month now. With our impact growing multi-fold, we are excited to drive positive change and help the youth of Bharat find employment,” said Madhav Krishna, Founder and CEO. “This funding will enable us to further leverage AI, to provide these workers with unprecedented growth opportunities and elevate their professional journeys. Over time, we want to help over a billion people find livelihood.”
Reflecting on the recent investment, Vinod Khosla, Founder of Khosla Ventures, said, “Vahan.ai has consistently demonstrated a commitment to leveraging AI in a way that goes beyond mere technology—it’s about creating real-world impact. As an early supporter, I’ve seen firsthand how their innovative approach is redefining recruitment for the blue-collar workforce in India. AI has the power to shift paradigms, transforming challenges into opportunities. Vahan.ai stands out by not only reducing the effort in repetitive tasks but by providing meaningful, scalable solutions that open doors for millions.”
Addressing the fundraise, Paul Grossinger, Co-founder of Gaingels, stated, “Gaingels is excited to back Vahan.ai as they harness AI to create tangible impact in underserved segments. Vahan.ai’s approach to applying technology where it matters most aligns perfectly with our mission to support businesses that drive meaningful change in local communities.”
Vahan.ai started when Madhav, who holds a Masters in Artificial Intelligence from Columbia University, left his job in the United States to return to India in 2016 to build a recruitment platform for blue-collar workers in India.
As Vahan.ai secures this new round of funding, the company is poised to amplify its mission of driving positive change, fostering inclusive growth, and creating meaningful job opportunities for India’s blue-collar workforce. With unwavering support from its investors and stakeholders, Vahan.ai continues to empower the youth of Bharat, using AI to bridge the gap between talent and opportunity, and to build a future where every worker has the chance to thrive.
