More than half of the working population in Latin America work in the informal economy, often with meager wages and few benefits. Magneto Global’s “Applicant Tracking System” helps more than 2,500 global companies recruit for formal jobs in the region.
Magneto says it has helped Starbucks, Coca-Cola, KPMG and other companies cut recruitment costs by up to half and address unconscious biases. “We plan to double the market and focus on what companies and new generations of collaborators are looking for,” said Magneto’s Alejandro Arango.
With the new $7 million injection, the company plans to reach more than 20,000 business clients in Colombia, Mexico, Peru and the US.
Breaking barriers
Investors in the seed financing round include Acumen Latam Impact Ventures, or ALIVE Ventures, and Impact Ventures PSM and Latin Leap. “We firmly believe that in Latin America, accessing formal jobs is a ticket out of poverty,” said ALIVE’s Santiago Álvarez, who will join Magneto’s board of directors.
