When I Work Raises $200M to Enhance Shift Scheduling

The Rise of Software for Hourly Workers

Approximately 55% of the workforce consists of hourly employees. However, technology designed for the workplace has historically prioritized “knowledge workers.” This is now changing, as evidenced by a significant funding round for an application specifically tailored to the needs of hourly and shift-based personnel.

When I Work Secures $200 Million in Growth Funding

When I Work, a messaging platform enabling hourly workers to manage shifts, exchange shifts with colleagues, and inform management of absences, has successfully closed a $200 million growth funding round. The company intends to utilize these funds for both business development initiatives and product expansion.

Investment Details and Financial Performance

Bain Capital’s Tech Opportunities fund is the sole investor in this round. While the valuation remains undisclosed, the investment is characterized as a “majority growth investment,” suggesting a valuation around $400 million. When I Work is currently profitable, having achieved profitability in June of the previous year, despite the economic uncertainties of the pandemic.

Growth Trajectory and Market Position

CEO Martin Hartshorne stated the company’s growth is currently “north of 35%”. This robust growth, coupled with a positive company culture and a successful product, prompted the decision to seek funding after 11 years with only $24 million in prior investment.

Early Backers and Company Origins

Previous investors in When I Work include Arthur Ventures, Drive Capital, Greycroft, and High Alpha. The company was founded in Minneapolis in 2010 and currently serves approximately 10 million hourly workers across 200,000 businesses in the U.S.

Focus on Small Businesses and Franchises

When I Work primarily focuses on smaller businesses and franchises, including well-known brands like Dunkin’, Ace Hardware, Ben & Jerry’s, and Kenneth Cole. The company experienced growth due to shifting market demands, particularly in the healthcare sector.

Adapting to Changing Market Needs

In the second quarter of this year, When I Work onboarded over 50 customers requiring shift-based systems for vaccination operations. The company plans to continue expanding its presence in the U.S. and to enter international markets.

Core Functionality and Communication

The application’s primary function is to streamline communication and shift management for hourly and shift-based staff. This addresses the challenges of coordinating with employees who have variable schedules and may not be present at the business simultaneously.

Expanding Service Offerings

Over time, When I Work has expanded its services to include payroll facilitation, labor reports, and analytics. The company intends to continue this expansion, both organically and through potential acquisitions.

A Shift in Focus for Workplace Software

For the past decade, workplace software has largely catered to “knowledge workers”. However, the increasing adoption of smartphones and digital products by the general population has created new opportunities to extend software solutions to a broader range of workers.

The Rise of Bring-Your-Own-Device

Employees often install When I Work on their personal smartphones, highlighting the strong “bring-your-own-device” trend within this segment of the workforce. Word-of-mouth referrals, with employees requesting the app from new employers, have been a significant driver of growth.

Competitive Landscape

The company faces competition from other players in the market, including Homebase, Workiz, Fountain, Wonolo, WorkWhile, Yoobic, Crew (acquired by Square), Workplace, and Justworks. These competitors offer varying features, presenting potential avenues for When I Work’s expansion.

High User Engagement as a Key Differentiator

Phil Meicler, a managing director at Bain Capital Tech Opportunities, emphasized the app’s high user engagement – 85% of users log in and utilize it at least weekly – as a key factor in its appeal.

Addressing the Labor Shortage

Meicler noted that the current labor shortage within the hourly working sector further underscores the value of a solution that delivers clear productivity gains and strong employee engagement. The company’s combination of growth and profitability was central to Bain Capital’s investment decision.

Future Expansion and Product Development

Bain Capital shares the company’s vision for expanding its HR suite, focusing on developing features that address the needs of employees and simplify their work lives. This expansion will be pursued through both organic growth and strategic mergers and acquisitions.