Instawork, the leading platform connecting businesses with skilled hourly workers, has successfully raised $60 million in a Series D funding round. The round was led by TCV, with participation from new investors 9Yards Capital and Larry Fitzgerald Jr., as well as existing investors including Benchmark, Spark Capital, Craft Ventures, and Greylock.
With this latest investment, Instawork’s total funding now amounts to $160 million, enabling the company to further enhance its AI-powered mobile app and platform. This platform serves as a connection point for over 4 million skilled hourly workers and tens of thousands of businesses.
As numerous studies have highlighted the revenue loss faced by hospitality and light industrial businesses due to staffing challenges, Instawork has played a vital role in helping businesses manage their fluctuating staffing requirements effectively. Simultaneously, the platform empowers hourly workers by providing them with flexibility in choosing their preferred working hours, locations, and conditions.
Despite the economic challenges and uncertainty faced by the country, Instawork has achieved remarkable growth, experiencing a 15x increase over the past two years. Over the last year alone, more than 2 million workers have joined the app. Leveraging this growth, Instawork has successfully staffed distribution centers for major retailers and a majority of sports stadiums across the United States and Canada.
The recent funding will enable Instawork to invest in advanced AI-driven capabilities, ensuring that partners are connected with workers who possess the necessary skills and exhibit reliable punctuality. Additionally, Instawork plans to introduce new self-serve features, including user-friendly tools for posting shifts within seconds and custom interfaces powered by data to simplify workforce management.
Gautam Gupta, TCV General Partner, emphasizes the transformative impact of Instawork’s technology in revolutionizing labor access for businesses. The platform’s use of technology and data effectively connects businesses with the skilled workers they require, significantly transforming the industry.
To further enhance the platform and provide additional benefits to its 4 million workers, Instawork intends to offer unique training and certification opportunities. This initiative aims to unlock more work opportunities for users who may currently lack certain certifications or who wish to showcase their certifications outside of the Instawork platform. Instawork will also introduce a new debit card designed to meet the specific needs of the flexible workforce, including access to instant pay.
Sumir Meghani, Co-founder and CEO of Instawork, highlights the revolutionary role of artificial intelligence in streamlining the connection between businesses and skilled workers. By simplifying the staffing process, reducing costs, and prioritizing the needs of businesses, Instawork offers a flexible and reliable solution. Simultaneously, the platform empowers local workers to choose the work that aligns with their skills and interests.
Inc. 5000 recognized Instawork as one of the top 10% fastest-growing private companies in the United States in 2022, and the platform was also featured on Forbes’ Next Billion Dollar Startup list. Additionally, Instawork received the 2022 ACE Award for “Best Innovation” and was recognized as one of the “Best Business Apps” by Business Insider.
Founded in 2016, Instawork has established itself as the premier flexible work app for local hourly workers. Its digital marketplace connects thousands of businesses with over four million workers, playing a crucial role in supporting local economies. With a presence in more than 30 markets across the United States and Canada, Instawork assists businesses in industries such as food and beverage, hospitality, and warehouse/logistics in filling temporary and permanent job opportunities.