Zepto’s $450M Funding: A Boon for India’s Gig Workforce?

India’s quick commerce darling Zepto has just raised a staggering $450 million at a $7 billion valuation, marking one of the largest pre-IPO rounds in the country’s startup ecosystem. But beyond the headlines, this capital infusion could reshape the landscape for gig workers, who form the backbone of the 10-minute delivery revolution.

Scaling Up: What the Numbers Say

• Daily Orders: Zepto now fulfills approximately 1.6–1.7 million orders per day, up from 500,000 in mid-2024.
• Store Network: Over 700 dark stores across 80+ cities, with aggressive expansion planned.
• Cash Reserves: Post-funding, Zepto holds $900 million in net cash, ensuring deep runway for growth.

This scale-up directly translates to thousands of new delivery roles, especially in Tier 2 and Tier 3 cities where Zepto is expanding next.

Gig Worker Impact: 5 Key Dimensions

1. Job Creation Across Geographies

With Zepto’s footprint growing, demand for last-mile delivery partners will surge. Analysts estimate 30,000–50,000 new gig roles could be created over the next 12–18 months.

2. Platform Competition = Better Incentives

• Higher per-delivery payouts
• Joining bonuses
• Flexible shift options

This competitive dynamic could improve earnings and working conditions for gig workers.

3. IPO-Driven Formalization

• Enhance insurance coverage
• Offer minimum earning guarantees
• Improve algorithmic transparency

Investors and regulators will scrutinize labor practices, potentially leading to better protections for gig workers.

4. Regulatory Momentum

India’s Code on Social Security, 2020 includes provisions for gig and platform workers. Zepto’s scale makes it a likely candidate for early compliance, which could:

• Trigger ESI-like benefits
• Enable skill development programs
• Support retirement savings schemes

5. Youth Employment Surge

Quick commerce attracts young, mobile-first workers. Zepto’s expansion could offer:

• Flexible income streams for students and part-timers
• Digital onboarding and training
• Entry into India’s growing platform economy

Strategic Outlook

Zepto’s funding isn’t just about valuation — it’s about velocity. As the company races toward IPO, its gig workforce will expand, evolve, and potentially gain new protections. For India’s 7.7 million gig workers, this could be a pivotal moment.

Credible Sources Supporting This Estimate

• ETRetail reports that Blinkit, Zepto, and Swiggy Instamart collectively aim to hire over 400,000 workers by March 2025, driven by dark store expansion and category diversification.
• Zepto’s CEO stated that the company alone has created 1.5 lakh jobs as of April 2025, in response to public scrutiny of consumer internet startups.
• NITI Aayog’s 2022 report on India’s gig economy projects continued growth in platform-based employment, especially in logistics and delivery roles.

How the 30K–50K New Job Estimate Was Derived

Zepto’s current scale (700+ stores, 1.7M daily orders) suggests a need for tens of thousands of delivery partners.

If Zepto expands by even 20–30%, it could easily require 30,000–50,000 additional gig workers, especially in new cities and categories.

This estimate is grounded in sector-wide hiring data and Zepto’s own growth trajectory.

Final Word

If executed responsibly, Zepto’s growth could set a new standard for inclusive platform capitalism — where speed meets dignity, and scale meets social impact.

Sources:

• TechCrunch, Oct 2025
• NITI Aayog Gig Economy Report, 2022

Empowering the Gig Workforce: Uncle Delivery's Commitment to Its Driver Partners

The gig economy has changed how people work, offering individuals flexible alternatives to traditional employment. Across urban and semi-urban regions, gig roles like being delivery partners are providing an income lifeline to many who seek autonomy over rigid office jobs or need supplementary income on their own terms. However, gig work often comes with several concerns, such as irregular income, lack of recognition, and limited long-term support. Companies that operate in this space carry a growing responsibility not just to their customers, but also to the individuals who carry out deliveries, often in high-pressure environments.

With on-demand logistics playing an increasingly central role in urban living, the relationship between platforms and their delivery partners is becoming a key marker of sustainable business. Drivers today look beyond just quick payouts. They seek flexibility, stability, and fairness. The delivery ecosystem is evolving, and platforms that prioritize their partners' welfare are likely to stand out. In this context, Uncle Delivery demonstrates a distinct approach to supporting and empowering its driver partners through clear policies, timely incentives, and dedicated support.

Flexible Work That Respects Personal Schedules

Uncle Delivery offers drivers the freedom to set their own schedules without pressure. Whether someone wants to deliver full-time or a few hours a week, the platform accommodates different availability levels. Drivers are not penalized for declining tasks, which means they can make decisions based on personal preferences or availability without fear of reduced access to work. This flexibility makes the platform suitable for a wide range of individuals including students, part-time workers, and those balancing caregiving responsibilities.

The sign-up process is designed to be quick and accessible. All that is required is basic identification vehicle documents such as RC Book, Vehicle Insurance and driving documents such as an Aadhar Card, PAN Card, driver’s license, and bank details. Once registered, drivers can begin accepting deliveries through the mobile application. Uncle Delivery offers a range of vehicle options,from two-wheelers to light commercial vehicles, enabling wider participation and ensuring efficient handling of everything from personal short-distance deliveries to bulk shipments.

Because drivers can choose when to log in and accept orders, they remain in control of their time and output. This model puts autonomy at the core of the experience and minimizes pressure, allowing individuals to integrate gig work into their lives in ways that suit them best.

Incentive Programs That Recognize and Reward Driver Partners

Beyond offering flexible work hours, Uncle Delivery also implements structured incentive programs that reward driver performance. These initiatives are designed to recognize consistent effort and boost engagement by offering tangible benefits for completing deliveries. One such initiative is the “Driver Premier League,” a program that awards points for each successful delivery. These points can be accumulated and exchanged for prizes such as fuel vouchers, electronic gadgets, and other useful rewards. The program is not limited to a select few, which means drivers at different levels of experience can benefit from it.

Additionally, drivers have the opportunity to complete “Reward Missions,” which are time-bound and goal-oriented challenges with added incentives. These missions offer extra income on top of regular earnings, serving as both motivation and financial support. What makes these reward systems effective is their transparency. Drivers can view their progress in real time within the mobile app, giving them a clear understanding of how close they are to reaching a goal or redeeming a prize.

These reward structures show that the company does not treat its driver partners as anonymous service providers. Instead, it recognizes the importance of consistent effort and aims to foster a motivated and acknowledged workforce. This not only improves retention but also boosts overall service reliability, benefiting customers and drivers alike.

Support and Simplicity That Enable Growth

For many individuals entering the gig economy for the first time, the learning curve can be steep. Uncle Delivery addresses this by offering accessible guidance from the start. The mobile app interface is intuitive, allowing drivers to manage deliveries, track payments, and monitor progress without needing advanced tech skills. Clear instructions and help features are built into the platform to make it easier for drivers to navigate orders, communicate with customers, and resolve delivery-related issues.

In case of queries or difficulties during the delivery process, drivers can reach out to dedicated support channels. These channels are designed to provide timely assistance, ensuring that no driver feels isolated or unsupported. Whether the concern is technical, operational, or financial, help is available directly through the app.

The system is built to ensure that drivers have everything they need to operate confidently. By reducing complexity and improving access to information, Uncle Delivery creates an environment where new drivers can learn quickly and experienced ones can focus on performance. This practical support makes it easier for gig workers to grow their income steadily over time, instead of feeling lost or overwhelmed by the process.

Payment Clarity That Builds Long-Term Trust

One of the most critical concerns for gig workers is whether their payments will be reliable and transparent. Uncle Delivery addresses this by offering a clear and consistent payment structure. Drivers are compensated based on distance, with no hidden fees or surprise deductions. The mobile app displays earnings in a simple format, allowing drivers to track their payouts in real time.

Timely payments help drivers maintain financial stability and plan better for their future. Whether it's day-to-day expenses or longer-term financial goals, consistent payouts allow gig workers to manage money more confidently. The platform also enables easy bank transfers, and drivers can view their delivery history and earnings summaries within the app.

The transparent payment system builds trust between the platform and its partners. When drivers are sure that their work is being accurately tracked and fairly compensated, they are more likely to continue working with the platform in the long run. It’s this consistency and dependability that differentiates Uncle Delivery from many others in the gig delivery space.

Conclusion

Gig work is here to stay, and the people who make it possible deserve platforms that support their growth, reward their efforts, and respect their independence. Uncle Delivery has built a system that does more than just connect drivers to delivery tasks. It offers them a practical, supportive, and financially fair environment to thrive in. From a flexible schedule to regular incentives and real-time earnings tracking, the platform addresses the major concerns of modern gig workers while keeping their experience central to its operations.

As delivery needs continue to evolve in cities and suburbs alike, driver partners remain the heart of this transformation. Uncle Delivery’s commitment to their empowerment shows what’s possible when a gig platform chooses to prioritize not just efficiency, but people. The future of logistics may be algorithm-driven, but the success of companies in this space will still depend on how well they treat those who drive them forward.

E-Commerce Industry Anticipated to Create 7,00,000 Gig Jobs by the End of H2 2023 Says TeamLease

• E-commerce and Logistics segments expected to drive major hiring
• 25% up from H2 2022 for roles like Warehouse Operations, Last-Mile Delivery Personnel and Call Center Operators
• Tier-2 and Tier-3 cities have a higher increase in open positions as against Tier-1 cities compared to last year

With the approach of the festive season, Indian E-Commerce companies are gearing up to fulfil consumer demands during the annual shopping frenzy. This surge in shopping activity is projected to generate almost 700,000 gig jobs in the second half of 2023. With July opening up the market with shopping festivals by various e-commerce players, the sector currently has around 200,000 open positions for temp workers primarily in the last mile delivery space and warehouse operations jobs. This year's festive hiring is anticipated to witness a remarkable 25% increase in gig jobs compared to the same period last year, reflecting the sector's optimistic outlook and aspirations to boost positive sentiments.

The demand for gig workers during the festive season has been consistently rising, not only in tier-1 cities like Bengaluru, Delhi, Mumbai, Hyderabad, and Chennai but also in tier-2 and tier-3 cities like Vadodara, Pune, Coimbatore. In both metropolitan areas as well as tier-2 and tier-3, there is a predominant need for roles such Warehouse Operations, Last-Mile Delivery Personnel and Call Center Operators, however, the proportion of demand is higher in the tier-2 and tier-3 cities versus in tier-1 as against last year. This is primarily owing to the recovery in rural demand expected in the back of easing inflationary pressures.

Despite the challenges posed by the macro-economic situations, the surge in employment opportunities presents a positive outlook for gig workers all across the country. Businesses are actively recruiting temporary workers to ensure best customer experience during the festive period. As a result, the job market in these cities is thriving, providing a much-needed boost to the local economies.

Speaking about the increasing demand, Mr. Balasubramanian A, Vice President and Business Head, Teamlease Services, said, “Over the last 5 years, we have seen an impressive 20% year-on-year increase in the demand for gig workers, and this upward trend is expected to persist for the next 2-3 years, especially in the thriving e-commerce category. With July opening up the festive season hiring, the e-commerce sector alone has 200,000 open positions at present, which will eventually increase and reach about 700,000 by December. According to industry reports, it is anticipated that India's gig workforce will reach 2.35 crore by 2029-30, which clearly indicates the growing demand for this talent pool. The hiring of gig workers offers a multitude of advantages, allowing corporates to optimize spending, enhance scalability, and embrace agility. Moreover, it empowers the Indian workforce to earn on their own terms, providing a great sense of flexibility and comfort. As we move forward, we look forward to a future where the gig economy plays a pivotal role, and we are committed to supporting this dynamic workforce for the e-commerce sector in their journey towards success.

This year's festive season unveils a dynamic landscape characterized by opportunities and disparities. The statistics show a remarkable 69% surge in gig workers earning more than ₹150,000, indicating a thriving high-income segment. Additionally, there is a significant 62% increase in gig workers earning between ₹85,000 and ₹150,000, reflecting a prospering middle-income bracket. However, it is essential to acknowledge the challenges faced by the lower income bracket, as evidenced by the slower 26% increase in salary among gig workers earning less than ₹20,000. On a more positive note, the 20% increase in salary for workers earning between ₹20,000 and ₹40,000 points towards a promising middle-income group.

“To meet the ever evolving demands of the festive period, e-commerce companies seek highly skilled and adaptable gig workers and temporary employees. The ideal candidates have excellent time management skills and a background in customer service, ranging from delivery personnel with valid driver's licences and good driving records to warehouse and operational support staff with physical endurance. These individuals, who, when required can work overtime, weekends, and holidays, play a critical role in ensuring smooth operations and exceptional customer experiences during this critical time of year.” Added Mr. Balasubramanian A. 

Furthermore, the data show that the surge in gig/temporary workforce hiring is not limited to the e-commerce sector. Several other industries are also ramping up their recruitment efforts to meet the festive season's demands. Retail and logistics are among the prominent industries that are expanding their workforce to meet the increased consumer activity during this festive season.

About TeamLease Services Pvt. Ltd. : TeamLease Services is one of India’s leading people supply chain companies offering a range of solutions to 3500+ employers for their hiring, productivity and scale challenges. A Fortune India 500 company listed on the NSE & BSE, TeamLease has hired 20 lakhs+ people over the last 20 years. One of India’s fastest growing employers, TeamLease also operates India’s first NAAC Accredited Skill University and India’s fastest growing PPP Degree Apprenticeship Program. The Company offers solutions to large, medium and small clients across the 3Es of Employment (over 2.9 lakhs associates/trainees), Employability (over 5 lakhs students) and Ease-of-doing Business (over 1000 employers). In FY2015, TeamLease rolled out DA (Degree Apprenticeship) to provide on-the-job training to apprentices.

In An India's 1st, Rajasthan to Impose Surcharge on Online Transactions to Fund Gig Workers' Welfare Benefits

The Rajasthan Assembly Monday passed a Bill extending social security to gig workers.

In a first in India, Rajasthan has approved a bill to impose a surcharge on online transactions via platforms like Amazon, Ola and Zomato to fund welfare benefits for gig workers. 

Approved without any debate in the state assembly, the bill states that the aggregators will have to provide data of all gig workers registered with them within 60 days of the notification of the law.

As per the bill, the state government will impose a surcharge on online transactions via platforms like Amazon, Ola and Zomato to fund welfare benefits for gig workers, the first such scheme in the country.

Rajasthan state Chief Minister, Gehlot in his budget speech earlier this year had said that “Currently, companies like Ola, Uber, Swiggy, Zomato and Amazon, etc. have engaged young workers on contract on ‘per transaction’ basis. Such workers are called gig workers. Like elsewhere in the world, the scope of ‘Gig Economy’ is continuously growing in the state. Today, the number of gig workers in the state has increased to 3-4 lakh. These big companies do not make any arrangements for social security for these gig workers.”

Eventually, Rajastпan state assembly approved late on Monday the platform-based gig workers' welfare bill, under which online platforms would collect a surcharge of up to 2% on transactions, according to state officials, and deposit the proceeds in a welfare fund to be run by a board with workers, industry and government representatives.

The bill is likely to benefit over 400,000 gig workers in the state and also has a provision to set up a tribunal with some judicial powers to address gig workers' grievances against their aggregator platforms, said a Reuters report citing state government officials.

The number of gig workers has grown sharply in India to an estimated 15 million - emerging as a constituency pursued by political parties ahead of elections in five states in the next few months and general elections early next year.

A recent Quess Corp survey suggested that 80% informal employees expect their employers to provide them security of ESI and Other Medical Benefits.

5X Growth in Demand for Gig Workforce After Mass Layoffs

The gig economy is the fastest-growing part of the workforce, and it is a labour market characterized by short-term contracts or temporary work. Companies in today's digital world are adapting their business models to attract more and more freelancers due to their agility, skillset, and reduced cost. Hiring demand for the Indian gig economy continues to grow at a rapid pace in the post-layoff employment market, reveals the Taskmo Gig Index (TGI). While digital transformation spurred by the global pandemic is constantly rewriting the marketing scenario, Indian companies are increasingly on the lookout for gig partners to fulfil roles in Tech gigs, Content modertaors, business development, telecallers, brand promotion, and micro-influencers.

Gig workers are no longer young people looking for a seasonal job: they're professionals that have had to create new ways of living and working as they can't find jobs with long-lasting hiring commitments. 

Gig workers are self-employed individuals who do not have an employer and do jobs independently or through third parties. The main benefit for companies hiring these workers is that it costs less than hiring permanent employees due to lower salaries, taxes, benefits, etc.

As per the Taskmo report, the number of users on the Taskmo platform increased by 21% last month, while the demand from recruiters noted a 5X growth in January 2023. It is promising to see that top recruiters have strengthened their roots across Tier-2 and Tier-3 cities such as Indore, Bhopal, Ranchi, Lucknow, and Vadodara which are picking up their way to gig jobs, while metro cities continue to maintain the growth momentum for gig workers.

Tier-2 and Tier-3 cities have noted improved demand for gig given that companies are expanding their geographical footprint beyond metros by setting up secondary offices in smaller towns.

Recruiters are also going the extra mile to attract workers from smaller cities through a tech-driven approach, providing multi-language support, job tracking and monitoring solutions, as well as ease of payments. Moreover, location is no longer a deal breaker as many jobs today can be done remotely.

Given the fall of the start-ups, another population of laid-off employees chose to try their luck in yet another emerging employment trend – the gig economy. There are around 15 million gig workers in India and the sector is rapidly growing satisfying the most preferred working styles of millennials, Gen Z, and Y.

As India moves toward becoming a $5 trillion economy by 2025, the gig economy serves as a building block that helps the economy achieve the final goal of eradicating the gap between unemployment and income. Freelancers, cleaners, delivery executives, bloggers, consultants, etc are a part of the gig economy. In recent times, most gig jobs are platform enabled, which also gives gig workers the flexibility to work for more than one contractor.

The booming gig segment has come a long way and brought in economic benefits of productivity and employment to the Indian economy. Amid worries over start-up layoffs, funding crunch, and shutdowns, most gig tech platforms have witnessed a surge in demand for gig workers across Quick commerce, Healthtech, Fintech, and E-commerce sectors.

What Gig Workers Should Expect in 2023?

Image by katemangostar on Freepik

One of the newest employment trends that have gathered several eyeballs in recent times including the Niti Aayog, a think tank of India, is the concept of gig working. As per the Niti Aayog report, ‘India’s Booming Gig and Platform Economy’, the Indian gig workforce is expected to expand to 23.5 million workers by the year 2029-30, which is nearly a 200% jump from the current 7.7 million. The report also states that gig working is about to expand to all sectors, where 47% of the jobs are medium-skilled, 22% are high-skilled and around 31% are low-skilled. Taskmo: A gig discovery platform witnessed a 7X surge in demand for white-collar gig workers for the roles of administrative assistants, industry experts for e-commerce companies, technical skills workers, analytics, and data scientists.

Overall, the demand for gig workers has increased by 10X whereas the participation of gig workers has increased by 3X in the year 2022 in comparison to the year 2021, according to the Taskmo report 2022. Women's participation has increased from 18% to 36% showing a remarkable growth of 2X last year whereas Youth participation in the Gig economy has seen an 8-fold increase between 2019-2022.

While digital transformation spurred by the global pandemic is constantly rewriting the marketing scenario, Indian companies are increasingly on the lookout for gig partners to fulfill roles in business development, field sales, last-mile delivery, digital promotion, brand promotion, and micro-influencers. Gig workers are no longer young people looking for seasonal jobs: they're professionals that have had to create new ways of living and working as they can't find jobs with long-lasting hiring commitments. Gig workers are self-employed individuals who do not have an employer and do jobs independently or through third parties.

Commenting on the growing demand for gig jobs, Prashant Janadri, Co-Founder, Taskmo Said, “Gig is the newest trend in the employment market and today we see its expansion across every industry in the country. Over the last two years, rapid tech advancements followed by the introduction of flexible work models have created an evolution of the gig economy at large. Now we see every other company promoting the gigification of traditional job roles. Furthermore, we have seen that emerging segments in gig are largely dominated by Millennials and Gen Z today.”

Tier-2 and Tier-3 cities have noted improved demand for gigs given that companies are expanding their geographical footprint beyond metros by setting up secondary offices in smaller towns.

Recruiters are also going the extra mile to attract workers from smaller cities through a tech-driven approach, providing multi-language support, job tracking and monitoring solutions, as well as ease of payments. Moreover, location is no longer a deal breaker as many jobs today can be done remotely.

Whether this is a positive transformation or the need of the hour, the gig economy is constantly rewriting the hiring and working scenario all over the world, Indian companies are increasingly on the lookout for gig workers to fulfill roles in business development, field sales, last-mile delivery, digital promotion, brand promotion, and micro-influencers.

During this growing gig economy times, in 2023 gig workers should expect:

More opportunities

Year 2023 is all set to make new records in the history of the gig economy. Seeing the continuous growth from the demand end, a 15X increase in the demand of gig workers is expected in the first two quarters itself. After COVID pandemic situation, workers are prioritising mental health, family and work flexibility while earning good and that will create a healthy demand and supply situation in the economy. E-commerce, mobility, IT, and marketing sectors will continue to create the highest demand whereas Business development executives, field sales executives, micro influencers.Telecallers, etc roles will be in top demand.

Heath and financial benefits

Gig economy is now a well known form of work culture in every sector, from generating leads to executing successful marketing campaigns all over India Gig workers are the most cost-efficient form of getting the work done. The year 2023 will be the most crucial year in the reference of building a healthy work environment for gig workers. From providing health benefits to providing all the basic work benefits, gig discovery platforms as well as the government are all ready to prioritise the mental as well as physical health of gig workers by providing various social and financial securities.

Upskilling

A gig economy is a place where the more skills you have the more you earn, your total earnings are directly proportional to the number of skills you have and how up-to-date you are according to the market demand. The gig economy is considered to be the most fragile market where the demand for skills keeps changing according to the session and market trends so continued upskilling will play an important role in how much you can earn. Majorly the Platforms like Taskmo will keep dominating the industry as they provide an opportunity to upskill according to the market demand.

PickMyWork Announces Boosting Acquisition for its Clients by Upto 100% M-o-M

PickMyWork, a startup assisting digital companies to acquire end customers (individual users and merchants), has announced it has achieved enabling 100% m-o-m increase in user base for its clients. Currently, PickMyWork empowers companies across the Fintech, D2C, and Pharma Tech sectors, with its client base growing at a rate of 50% month on month. PickMyWork is India’s largest digital distribution network built on a pay-per-sale model, enabling internet-based start-ups to gain end customers for their products, including shops, at a very minimal CAC (cost of acquisition).

PickMyWork leverages technology to find, train, and manage agents for internet-based start-ups in order to help them scale. Client companies witness an average of 100 to 300 percent of customer base growth in 6 months of listing on the platform. At present, PickMyWork operates in 210 cities with 10,000 gig workers and merchants as part of its agent network, providing them with supplemental income opportunities. The startup’s immediate expansion strategy is to go deeper by onboarding, training and enabling more gig workers in the cities where it is currently active, while also targeting the North and West Indian states in the coming six months.

Commenting on the growth targets Kajal Malik Co-Founder & CSO, PickMyWork affirmed “At PickMyWork we have a clear mandate to identify and enter new geographies as well as strengthening our roots in existing locations to help our clients scale faster . This model is resulting in tremendous value creation as it bridges the gap between internet-based companies and audiences in tier2 and tier 3. To meet the ambitious targets that we have set for our clientele, we are also broadening our gig partner network to establish a fusion of technology and human interaction to ease the onboarding process for merchants and SMBs. Our gig workers have successfully onboarded more than  2,50,000 SMBs that are already reaping fruits from the rich offerings of client products built for enabling this target group .”

Among its clients are B2B titans such as Meesho, Flipkart, Freecharge, IndusInd Bank, CityMall, JAR, FI Money, Amazon Pay, and Kotak. At a time when many companies are laying off, PickMyWork is creating earning opportunities for job seekers through its platform where they can register, complete sales gigs, and earn commissions. The client only pays after the work is successfully completed which is a win-win equation for all the stakeholders- clients, gig workers and PickMyWork.

About PickMyWork

Gurugram, Haryana-based PickMyWork is a gig platform that helps digital companies acquire end customers including shops for their products through a Pay-per-task model at a very low CAC. Incepted by three friends who are now its co-founders, Kajal Malik, Vidyarthi Badireddy, and Utsav Bhattacharjee, founded PickMyWork in 2019. With Indian youth primed to complete delivery gigs for Food Delivery / Hyperlocal apps like Swiggy, Zomato, Big Basket and earn commissions, the founders created PickMyWork, a pay-per-sale gig platform, where sales gigs could be completed for internet companies with the promise of 3X earnings/hour of effort compared to delivery gigs.

Gig Workers' Financial Platform KarmaLife Raises $2.2 Mn in Pre-Series A Funding, Led by Artha Venture Fund

Uses alternative data to facilitate credit to ‘new to credit’ gig workers

Eyes 10-fold growth in the next 12 months – boost product development, enhance the market footprint and team expansion

KarmaLife, India’s 1st real-time credit solutions provider for gig workers, raised $2.2 million in pre-series A round, led by Artha Venture Fund (AVF). Netgraph Investment, LV Angel Fund, Singularity Ventures, and Angel investors including Abhinav Sinha (CDC Group PLC), Amit Jain (CEO -Global Equity London), Balesh Sharma (MD -Vodacom South Africa, Ex-CEO Vodafone Idea), Vamsi Udayagiri (Founder Hesa), Vikram Kailas (MD & CEO Mytrah Energy) and Prateek Agarwal (ex-CBO BharatPe), also participated in the round. The Fintech platform will utilize the funds for further product development, team expansion, and employer partnerships. This is AVF’s 16th investment from its $33 million micro-VC fund.

Founded by Rohit Rathi, Naveen Budda and Badal Malick, KarmaLife has access to 130k+ users and is eyeing a 10-fold user growth in the next 12 months. Moreover, the company has been witnessing a 40% MoM growth in credit disbursement since July 2021 and will surpass ₹500 crores in disbursals by the next fiscal. KarmaLife plans to scale its business by partnering with 150+ new employers and will be launching various innovative financial products such as liquid savings and micro-insurance customized for this segment.

Taking cue from an unmet demand of relevant credit product at an affordable price for the 15 million data-rich but skill-poor workforce, the B2B2C startup solves their liquidity problem and offers financial products linked to their earnings & transaction history as well as mobile usage behavior. Personalized, subscription-based credit products, such as Earned Wage Access and dynamic Line-of-Credit, are offered based on proprietary real-time credit scoring system called ‘KarmaScore.’ KarmaLife caters to the Gig & Contract workers associated with some of the biggest brands such as Flipkart, Delhivery, Zomato and Uber, among others.

 

Rohit_Rathi co-founder of KarmaLife

Rohit Rathi, Co-founder, KarmaLife, said, “We were surprised at the sheer lack of appropriate and sustainable credit solutions for low-income working populations. We are on a mission to solve this using technology, and have built a KarmaScore framework using alternative data, and a very scalable deployment model for employers and gig-platforms. We are creating a winning eco-system that brings together Financial Institutions, Employers, and Gig workers, to drive a new and transformative business model. We are already seeing ~85% repeat rates with our product along with significant levels of retention boost in an otherwise very high churn segment. This recent round of funding will help us to accelerate our vision of Financial Inclusion for Blue Collars in India.”

Anirudh A Damani, Managing Partner, Artha Venture Fund, said, “In a time where the gig economy is expected to contribute significantly to India’s GDP, KarmaLife is set to empower the segment’s workforce. KarmaLife’s credit solutions will introduce a sense of financial stability in an otherwise fragmented industry, which is bound to boost productivity. Moreover, the real-time credit access experience for the end-user also helps them overcome the enormous challenge of financial literacy.

We are super impressed by the team at KarmaLife and love they have been capturing the top 3 companies in the most labour-intensive sectors! Rohit has a solid track record as a serial entrepreneur, and we are confident that KarmaLife will cement its position as a category leader.”

How KarmaLife Works

KarmaLife serves Gig workers with subscription-based finance built on Digital Karma. It offers them digitally integrated real-time credit to better manage their day-to-day cash flows and become more financially resilient. They partner with employers/platforms to provide Earned Wage Access and dynamic Line of Credit solutions to their workers based on their work history and other digital data.

By partnering with KarmaLife, employers can provide inclusive, impactful, and easy-to-administer worker benefits that boost productivity and retention without any financial liability. Existing partners have seen up to 30% improvements in worker productivity and reduced churn after using the solution. Today KarmaLife works with major digital gig platforms across segments like ride-sharing, food-tech, e-commerce, logistics, flexi-staffing and others.

About Artha Venture Fund

Artha Venture Fund (AVF) is India's first early-stage micro-VC firm with a corpus of $33 million. Since its inception in late 2018, AVF has primarily funded and supported multiple startups that operate as enablers and entities focused on solving the challenges of Indian consumers and businesses. The current fund allocates thematic investment for B2B, B2C/D2C, and D2C enablers.

Led by Anirudh A Damani, a second-generation investor, the firm has a network of limited partners, co-investors, founders, and family offices that traverse the globe. AVF's portfolio includes Agnikul, LenDenClub, HobSpace, PiggyRide, Daalchini, Kabbadi Adda, and more.

Artha Group, the umbrella entity of AVF, has investments in 90+ startups across India, the US, Israel, and Africa like OYO Rooms, Purplle, IconBuild, Tala, LeveragEdu, Coutloot, Karza Technologies, Mobilewalla, Interstellar and more.

For more information, please visit www.artha.vc

India’s First Health Plans For Gig Professionals Launched

Gig-work platform GigVistas partners with e-insurance platform Alyve Health to bring affordable health cover to India’s 8 million+ gig economy professions

Comprehensive group insurance plans starting at ₹999 a year, and providing up to ₹30 Lakh cover for independent contractors, freelancers, and other gig economy professionals

AI-powered gig-work platform GigVistas today announced its partnership with Alyve Health to launch comprehensive health plans for India’s 8 million+ gig economy professionals. The newly-launched plans are India’s first to cover gig professionals along with their families and are highly-affordable, keeping in mind the specific needs of independent contractors, freelancers, and gig professionals.

Starting today, all members of GigVistas will be able to purchase a comprehensive and affordable health cover for themselves or their families. The plans start from as low as ₹999 per year for their families and are between 40-70% cheaper than similar products available for retail customers. The plans offer benefits including health cover of up to ₹30 lakh, and options for extending the coverage to elderly parents up to the age of 75 years. Digital healthcare including complimentary access to doctors on call and discounts on medicines and diagnostics are included in the plan.

Anilesh Seth, co-founder & CEO of GigVistas said, “We realized that gig workers and freelancers often miss out on the benefits that a full-time employee gets, especially a group health plan. Our health plans have therefore been designed by Alyve Health to match or exceed the benefits of employer-provided group health covers.”

“Today’s launch of health insurance for gig professionals is also an important milestone in our journey towards building India’s most trusted gig ecosystem that provides security for gig professionals and simultaneously enables companies to find high-quality talent for their just-in-time hiring needs,” Anilesh added.

Shashank Avadhani, co-founder and CEO of Alyve Health said, “Health insurance covers are fast becoming expensive investments . At Alyve Health, we are collaborating with the insurance and health ecosystem to create health plans that are affordable, adequate and accessible. We have an ideal partner in GigVistas to take our insurance solutions to millions of independent gig professionals in India, who are otherwise not eligible for group health covers.”

GigVistas said that members who purchase the health plans would have additional benefits of free doctor (GP) consultation on call for 12 months, discounts on medicines and exclusive access to health and wellness programs. In addition, gig professionals will be able to purchase health insurance online on GigVistas without requiring any pre-issuance medical check-ups.

According to a 2021 Boston Consulting Group and Michael & Susan Dell Foundation report, India has 8 million gig workers or professionals, and the number of flexi or gig jobs could soar to 90 million in 8-10 years. Another report by ASSOCHAM said that India has around 15 million freelance workers engaged in projects in sectors like IT, HR, and designing. In comparison, there are almost 53 million independent workers in the US.

How AI and Other Tools Are Empowering Companies and Employees With Gig Work

The gig economy is not a new concept. People have always worked gigs. The only difference is that when we talk about a gig in today's scenario, it is now looked at from a technology-enabled task. With the changing times, the gig economy is gaining prominence across the globe. India has been embracing it with open arms too. A study by an Australian research agency called PaperGiant has revealed that 66 per cent of Indian employees wish to work from home permanently. Furthermore, 70 per cent of people reported having better job satisfaction since the pandemic.

The new normal has created a distinctive opportunity for markets and employees to re-think their ways of working. Organizations are establishing a hybrid workforce, making gig workers a distinct part of every organization in the coming years. Therefore it will become important for HR to rely on relevant technologies such as Artificial intelligence, and big data analytics to successfully manage the employees spread across the globe.

In the expeditiously growing world, implementing AI technology is becoming a necessity for organizations. Here’s how with the help of AI and other tools, HR managers can successfully manage their gig-style workforce.

Empowering and Engaging the Workforce

Listening to employee’s grievances and how leaders and HR will respond to the same has become crucial, now more than ever. At times like these, technologies such as the Voice of Employees (VoE)- the analytics driven by AI, will be helpful. VoE can help leaders analyze what their employees have to say about the organization’s culture. The data will also help leaders track employee engagement and feedback. This will ensure better relationships and positive change in the organization’s culture.

Communication and Collaboration Solutions

Technology helps in connecting hybrid teams. It will be effective for those employees who are working remotely and hardly have any face-to-face interactions. AR and VR-enabled video conferencing platforms will bring revolution in this sector, creating an inspiring environment for all the users across the world to meet, interact and collaborate. The combination of AR, VR along artificial intelligence will be the cherry on top. With the aid of this technology combination, HR can educate the next-gen employees with high-risk jobs.

Learning and Upskilling Solutions

To match the fast-paced environment, organizations need to focus on learning and upskilling their employees. AI algorithms help to create personalized training programs, suiting every employee’s needs. AI can also help companies manage their internal talent marketplaces, connecting workers to new and suitable opportunities as per their skills.

Performance Management Solutions

The absence of a face-to-face office setting may make it difficult for managers to analyze employee performance and pinpoint which employee is low on productivity. AI technology can provide data and insights which helps HR managers to analyze, find gaps, and work towards improvement. One thing companies will need to ensure is to respect employees’ privacy while extracting such data.

Hiring Solutions

AI will transform the recruiting process by automating time-sucking tasks. HR managers can hand over mundane lists such as job matching, emailing, scheduling, and screening processes in the hands of AI chatbots. Chatbots can also help in simplifying tasks like updating employees’ personal information. The method will help HR managers to achieve desired, standardized, and more unbiased results. AI will help HRs to become more proactive and cultivate better relationships with candidates.

Digital Twins: 

After the sudden shock organizations faced during the pandemic, they are now preparing their systems to be more resilient and efficient. Implementing a digital twin technology will provide HR workplace insights using real-world data. The use of digital twins will enable HR to experiment with different contingent scenarios and check if the organization is ready for any uncertainty.

Health Tech: 

Organizations are slowly and steadily understanding the positive impact of focusing on employees’ health and happiness on business. Hence the future may see health tech making a significant place in HR. With the help of AI, HR will be able to provide physical, mental, and emotional support to employees.

Smart Building IoT Devices: 

These devices provide users complete control over the building’s functions such as lighting, space, security, environment amiability and assets. The real-time data generated with the Smart building IoT devices will help HR to measure how the building is utilized. It will help HR optimize building spaces while making them safer, greener and engaging for employees.

Technology is the key ingredient that will help organizations achieve their workforce goals. Without its proper implementation, it will be much harder for the organizations to survive in the current and future scenarios.

The future HRs will walk holding the hand of SaaS platforms, which will help them in the hire and manage their workforce and simplify sourcing the talent process.

About the Author -

This content has been authored by Girish Kukreja is the CEO and Co-Founder at FlexC, a distinctive platform that aims to revolutionize the hiring landscape in India. FlexC is a one-stop solution for hiring, a scalable digital platform that serves as an integrated marketplace for Independent Consultants to access White Collar Gigs and for organizations to access best-in-class talent.