Snagajob, America’s largest marketplace for hourly work, completed a $100 million Rho Acceleration–led investment with NewSpring Capital and the Invus Group. The company will use the proceeds to expand its product offerings and fund select acquisitions.
Founded in 2000, Snagajob is America’s largest marketplace for hourly job seekers and employers through its work with over 65 million members and nearly 200,000 employers, including nearly half of the brands on the Fortune 1,000 list. The company has redefined and optimized sourcing, recruitment, onboarding, and management solutions for the hourly worker industry. This investment will help accelerate Snagajob’s vision of offering a fully mobile, on-demand hourly hiring process while not compromising quality or accuracy.
“It’s an exciting time for our industry. However, it's unfortunate that in the age of on-demand everything, the average hourly job seeker is offered no greater efficiencies when looking for a job,” says Peter Harrison, CEO of Snagajob. “It should only take minutes to secure hourly work, not the days and weeks it takes today. This new funding, coupled with the fact that almost a million workers are creating new profiles on Snagajob every month, will dramatically accelerate our realization of this vision.”
The investment follows a period of massive growth for the company. Since 2013, Snagajob has nearly doubled its revenue derived from employers and more than doubled its mobile traffic. The company now serves nearly a million job applications a week with over half of these from a mobile device and with a completion rate more than 10 times the industry average. The company also grew its own workforce by 30 percent over the past two years, has expanded its offices into Washington, D.C. last year and is already looking for additional office space.
“The tightening labor market, growing ubiquity of mobile devices and the rise of the on-demand economy, provide the perfect storm for Snagajob to transform the way hourly workers find work and employers find workers,” says Habib Kairouz, managing partner at Rho Acceleration. “We are excited to partner with an industry leader as it accelerates its unique vision.”
As part of the transaction, Habib Kairouz of Rho Acceleration and Marc Lederman of NewSpring Capital will serve on Snagajob’s board of directors. Over the last year, Harrison has also brought on several new executive team members to lead key areas of the company, working to scale the business to the next level and capitalize on its market leadership.
Raymond James served as financial adviser to Snagajob in this transaction.
