Workrise Raises $300M at $2.9B Valuation - TechCrunch

Workrise Secures $300 Million in Series E Funding

Workrise, a company specializing in workforce management solutions for the skilled trades, has announced the successful completion of a $300 million Series E funding round. This investment was spearheaded by Baillie Gifford, a U.K.-based firm, and has resulted in a company valuation of $2.9 billion.

Investment Details and Participants

Franklin Templeton participated as a new investor in this financing round. Existing investors, including Founders Fund, Bedrock Capital, Andreessen Horowitz (a16z), Moore Strategic Ventures, 137 Ventures, and Brookfield Growth Partners, also contributed to the funding. To date, Workrise has raised over $750 million in total funding.

Company Rebranding and Evolution

Formerly known as RigUp, the Austin-based company underwent a rebranding earlier this year. This change was implemented to emphasize its expanding focus beyond the oil and gas sector, particularly following challenges faced by that industry in recent years.

In 2020, Workrise responded to industry downturns exacerbated by the COVID-19 pandemic by reducing its corporate workforce by 25%. Currently, the company employs over 600 individuals across 25 office locations.

Financial Performance and Growth

Despite initial setbacks, Workrise demonstrated significant recovery. The company’s gross revenue has tripled since 2018, increasing from under $300 million to approximately $900 million by the end of 2020.

Origins and Expansion

Founded in 2014, Workrise initially functioned as a marketplace connecting on-demand services with skilled labor within the energy industry. A previous $300 million Series D round, led by Andreessen Horowitz (a16z) in October 2019, had valued the company at $1.9 billion.

Since then, Workrise has strategically broadened its scope to encompass industries such as wind, solar, commercial construction, and defense. Essentially, the platform facilitates connections between skilled workers and companies in the infrastructure and energy sectors, streamlining project staffing and management.

Platform Capabilities

Workrise’s online platform provides a comprehensive suite of services. It matches workers with over 500 companies within its network, manages payroll and benefits administration, and offers access to professional development training.

Future Plans

The newly acquired capital will be allocated towards continued expansion into new markets.

Leadership Perspective

Xuan Yong, co-founder and CEO of Workrise, and a former energy investor, stated that the transition to clean energy and increased infrastructure investment are creating a substantial demand for skilled labor. He emphasized that Workrise’s platform simplifies the process of connecting workers with available opportunities and assisting companies in recruiting qualified personnel.

Industry Disruption

Dave Bujnowski, an investment manager at Baillie Gifford, highlighted that Workrise’s online management platform is actively disrupting a sector traditionally slow to embrace technological advancements.

Geographic Reach and Impact

Workrise currently operates in over 70 metropolitan areas throughout the U.S. Examples include Atlanta, where the company links trade workers with commercial construction firms, and Broomfield, Colorado, where it provides training and job placement services within the U.S. wind energy sector.

Worker Training and Renewable Energy Focus

The company provides trade workers with access to training programs designed to prepare them for emerging roles in the energy and infrastructure industries. In 2020, Workrise successfully placed over 4,500 workers – nearly a third of its total placements – in renewable energy positions.

In 2019, the company placed 8,000 unique workers, with 13% finding employment in the renewables sector. This figure increased to 15,000 placements in 2020.