ShiftSmart Raises $95M to Connect Shift Workers with Employers

Labor Market Challenges Drive Investment in Workforce Management

Despite a somewhat slow start to the holiday shopping period, a significant demand for workers persists across numerous industries.

The current labor market tightness, significantly influenced by the trend known as “The Great Resignation,” underscores the growing necessity for technologically advanced solutions that effectively connect employers with available personnel.

Shiftsmart Secures $95 Million in Series B Funding

Shiftsmart, a labor management platform headquartered in New York, has recently attracted substantial investment, securing $95 million in Series B funding to further develop its workforce management software.

This software is designed to efficiently match hourly workers with available shifts across a diverse range of industries and job functions.

Established in 2015, Shiftsmart has cultivated a network exceeding 500,000 workers spanning over 50 countries.

These workers benefit from flexibility and control over their work arrangements, including location, hours, and payment frequency.

Simultaneously, employers are empowered to tailor their staffing strategies and mitigate employee turnover.

Focus on Worker Empowerment and Flexibility

“The demand side was already developing, but the key innovation, in our view, lay in addressing the supply side – the workers themselves,” explained Aakash Kumar, founder and CEO of Shiftsmart, in an interview with TechCrunch.

“We’ve streamlined the process, allowing individuals to easily create a profile, utilize the app, and work on their own terms.

The gig economy initially focused on point-to-point logistics, but we are expanding the concept of schedule control.”

This latest funding round brings Shiftsmart’s total investment to $117 million.

D1 Capital spearheaded the round, with participation from Imaginary Ventures, Spieker Partners, Oakridge Management Group, and S12F, alongside contributions from various industry leaders and institutions.

Investor Confidence in Shiftsmart’s Approach

Jeff Leventhal, managing partner at S12F, expressed his belief in the importance of worker empowerment and fair treatment.

He highlighted Shiftsmart’s approach as providing not only scheduling flexibility but also opportunities for workers to engage with multiple companies and roles.

“The traditional shift work model, with rigid requirements like ‘arrive at 2 p.m. or be terminated,’ is becoming obsolete,” he stated.

“Shiftsmart is setting a new standard for user experience in this space.

Building effective marketplaces is challenging, but Shiftsmart’s technology is uniquely adaptable to the needs of both employers and employees.”

Expanding Customer Base and Market Reach

Shiftsmart’s client roster includes prominent organizations such as Circle K, Humana, Deloitte, Airbnb, and the Small Business Administration.

The company previously secured venture capital approximately three years ago, but with revenue consistently doubling or tripling annually, Kumar recognized the need for further investment, particularly in light of recent labor shortages.

“We assist employers in broadening their potential workforce by segmenting work into shift-level opportunities,” he added.

“Securing individuals for three-hour shifts several times a week is considerably easier than finding someone committed to a full 40-hour workweek with bi-weekly pay.”

Future Growth and Expansion Plans

The newly acquired funding will be allocated to scaling existing verticals, including audits and contracts, retail, and global logistics.

Additionally, Shiftsmart plans to launch new verticals, such as healthcare, and expand its team.

Currently employing 60 individuals, the company has doubled its workforce in the past year.

While much staffing technology has historically catered to knowledge workers, a growing number of companies, like Shiftsmart, are focusing on the needs of hourly workers and attracting investor attention.

Competition and Differentiation

In November, When I Work, a messaging platform for shift signups, closed a $200 million funding round.

Fountain secured $85 million, and Seasoned received $18.7 million for its tool designed for restaurant workers.

Earlier in the year, Homebase raised $71 million, and Workiz, specializing in home services professionals, obtained $13 million.

Despite this competitive landscape, Kumar emphasized Shiftsmart’s unique approach to customer partnerships.

Clients can leverage the platform with Shiftsmart’s existing labor force or integrate it with their own.

“This is an opportune moment for the business, and the global labor shortage has made our mission critical,” he concluded.

“Our primary focus is on scaling operations to meet demand and creating enhanced experiences for workers as we gain deeper insights into their behaviors.”