Artificial intelligence (AI)-powered recruitment startup Zappyhire has raised Rs 3.7 crore in a Seed funding round co-led by Kerala Angel Network and Alex K Babu, Founder, Chairman and Managing Director, Hedge Finance Ltd, the company said in a statement on Tuesday.
Strategic investors included Shihab Muhammed, former Co-founder, Freshservice, a cloud-based information technology service management company, Navas Meeran, Chairman, Eastern Condiments Pvt Ltd, Dr. M. I. Sahadulla, Rajesh Nair, Associate Partner at EY, and K Paul Thomas, Founder, ESAF Group of Social Enterprises, the company said.
“This was a thrilling round that saw more than four of our customers including ESAF and Hedge Securities turn investors. This reassures our belief in Zappyhire's potential in the recruitment automation domain,” the statement said.
The Software-as-a-service (SaaS) company will be using the funds to hire more employees and expand its footprint in Asia and North America. Zappyhire’s platform auto pre-screens and ranks candidates using semantic resume parser and AI-enabled video interview.
“Technology-based recruiting solutions which have the technical heft to scale and provide customised solutions is the need of the hour,” said Nair.
The platform eliminates human effort in candidate engagement processes such as scheduling or rescheduling interviews for assessment, and post-offer engagement to reduce the offer-drop-out ratio using conversation Artificial Intelligence (AI). The company provides right recommendations for recruitment activities based on the historical data of the organisation, the statement said.
The company claims to have grown exponentially in the last year and counts funded startups and small medium enterprises (SMEs), including ESAF Bank, Carestack, Surveysparrow, Jiffy.ai, BukuKas, among others as its clients. Zappyhire also recently worked with a number of government-sponsored digital hiring initiatives which deal with multiple job families, the statement said.
“This funding will be utilised to catapult our plan to grow as a global leader in recruitment automation providers,” said Jyothis KS and Deepu Xavier, Co-founders, Zappyhire in a joint statement.
Meanwhile, Kerala Angel Network had recently led a $600,000 pre-Seed funding in a Chennai-based digital home cooking startup, Cookd.
Demand for SaaS-based platforms in India is rising of late, and many startups have raised funds for expansion. Last week, Zvolv, a SaaS-based workflow automation platform raised $1.5 million from JSW Ventures and Riso Capital. Another SaaS startup, CoreStack, had raised $30 million in its Series B funding round led by Avatar Growth Capital.