ImpactAlpha, May 25 – More than 90 percent of India’s workforce is employed in the informal economy. That’s about 450 million workers, including security guards, housekeepers, construction workers and others, many of whom want more formal employment.
Bangalore-based startup BetterPlace compiles and analyzes identification data to help give informal workers access to skills training and formal jobs, and provides employee vetting services to Indian companies. It also uses data and a proprietary algorithm to build what it calls ‘trust profiles’ of informal workers, which can be used to help give them access to credit, insurance and health services.
“[Informal workers] aspire to move to formal jobs, but are unable due to the lack of data and the trust deficit that comes with the demographics,” BetterPlace founder Pravin Agarwala says.
BetterPlace has just raised $3 million in a Series A funding round, bringing its total raised to more than $4 million. The round was led by 3one4 Capital with backing from existing investors Venture Highway and Unitus Ventures.
“The best way for social transformation is when people at the bottom of the pyramid can move up to the formal economy,” said Unitus Ventures’ Will Poole.
BetterPlace started in 2015 as a background verification company and says it has supported more than 1.5 million workers.