AI-powered blue collar recruitment platform Vahan.ai raises $10 million funding

Vahan.ai, an AI-powered recruitment platform for India’s massive blue-collar workforce, has raised $10 million (or about Rs 83 crore) in a Series B funding round led by billionaire Vinod Khosla's Khosla Ventures.

Notably, Vinod Khosla is one of Time Magazine’s Top 100 Most Influential People in Artificial Intelligence in 2024.

The round also saw participation from Y Combinator, US-based VC firm Gaingels, and Vijay Shekhar Sharma (Founder of Paytm), amongst others.

What does Vahan.ai do?

The Bengaluru-based startup operates an AI-powered recruitment platform for blue-collar workers, encompassing the food, grocery, quick-commerce, and e-commerce delivery sectors. The platform connects businesses with the workforce needed to fuel India's growth.

Unlike others, it leverages artificial intelligence (AI) to streamline the hiring process for high-volume blue-collar jobs.

Placed over 500,000 workers

Vahan.ai claims its platform has successfully placed 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 monthly, the startup said it significantly reduces recruitment costs and turnaround times, setting a new standard in how AI can revolutionise hiring processes and drive large-scale employment.

“Each placement is more than a job; it’s a step towards a more secure and hopeful future”, said Madhav Krishna, Founder and CEO of Vahan.ai.

Expanding to other sectors

The startup said that 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 $250 billion, contributing approximately 1.25% to India’s GDP.

Vahan said the latest capital would be used to fuel its plans to expand into 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 expected to be worth approximately $616 billion by 2027.

Investing in AI technology

To capitalise on these growth trends, Vahan.ai said that it will also invest in advancing its AI technology.

Currently, the startup's AI Recruiter conducts interviews in English and Hindi, with plans to support eight major Indian languages and numerous dialects within the next year.

“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.”

What did Vinod Khosla said about Vahan.ai?

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," Khosla added.