BetterPlace Global, a SaaS (software-as-a-service) platform for frontline workforce management, said it has raised $40 million in an extended Series C round, adding Macquarie Capital and SITE Capital Partners to its cap table.
BetterPlace's existing investors Jungle Ventures and British International Investment also participated in the round, which seems rather sizable at a time when the startup ecosystem is struggling with a funding winter that has led to an acute fall in late-stage deals.
“We will be investing a large part of the money in enhancing products largely to support client organisations with efficiency, productivity, and governance and are working on products localised for geographies like Indonesia, Malaysia, GCC (Gulf Cooperation Council), and other countries,” BetterPlace Global CEO Pravin Agarwala told Moneycontrol on December 20.
Agarwala said the funds were raised in a convertible round and he expects the valuation to be between $500 to 700 million in the coming months. A convertible note is a short-term debt that converts into equity.
The company will also use the funds for geographical expansion. “We are going all out and investing in Indonesia, Malaysia, Thailand, Philippines, and other Southeast Asian countries as part of our geographical expansion -- both organic and inorganic in nature,” he said. The CEO also informed that BetterPlace is planning to launch Indonesia operations in the middle of January, followed by Malaysia in a month's time.
Founded in 2015 by Agarwala and Uday Singh, Betterplace started as a KYC (Know Your Customer) verification company. The startup then shifted its focus to providing employee lifecycle management services, including onboarding, background checks, training, certifications, and attendance management.
Over a year ago, in September, Betterplace raised $24 million via a series C rounding from CX Partners, Jungle Partners, CDC Group, Capria Ventures, 3one4 Capital, and Unitus Ventures.
“Healthy financial performance coupled with extensive innovation and growth has enabled Betterplace to become one of the leading players in modernising the largely informal sector of frontline workforce management,” said Amit Anand, founding partner at Jungle Ventures, in a statement shared by the company.
According to data available on the Ministry of Corporate Affairs (MCA) website, BetterPlace’s revenue for FY21 (2020-21) was Rs 52.5 crore, and it recorded a loss of Rs 18.2 crore.
“From a profitability point of view at a gross margin level, we are profitable. At the EBITDA level, we shall be positive by the end of next year,” said Agarwala.
Currently, over 1,100 enterprises use BetterPlace’s services to manage over 4 million frontline workers monthly, the company said in a statement. It added that it clocked a growth of over five times in FY22. Betterplace said it is eyeing an ARR (Annual Recurring Revenue) of over $100 million in FY23.
The company competes in parts with HRTech firms like DarwinBox, Teamlease, and CIEL HR.