Highlights:
- The company plans to utilize the funds to expand the platform’s functionality.
- Connecteam is among the most prominent players, with 20,000 corporate clients.
Connecteam, all-in-one software that provides HR tools, communications services, and everyday operations management (e.g., scheduling, virtual time cards), has raised USD 120 million in the current round of funding. It intends to utilize the funds to expand its platform’s functionality – an area currently lacking is recruitment, for example, to bring on more consumers.
This round of funding was co-led by Stripes and Insight Partners. Others such as Tiger Global, Qumra Capital, and O.G. Tech, too, participated. Connecteam did not reveal its valuation, but its CEO and Co-Founder, Amir Nehemia, revealed that it was typical for a Series C. According to a reliable source, this round’s valuation is over USD 800 million.
Connecteam, founded in Israel with offices still there, but based in New York, has raised USD 37 million in Series B just 10 months ago. But as a sign of the times, the startup has been experiencing a surge in development, not just because deskless workers, who account for an approximate 80% of all workers worldwide, but also because of the desire for more digital transformation that has led businesses to invest more in new technologies to make those teams’ duties more efficient.
Building technology for frontline and other unanchored workers has become a more crowded sector, including tech to address specialized roles (e.g., EduMe building a training and online learning platform, or Meta’s Workplace sharpening its emphasis on one-to-many core communications and conversations) and those providing platforms or more general-purpose approaches that compete more directly with Connecteam. (On the list are Flip, which just received funding after reaching 1 million users, Snapshift, Microsoft’s Teams, Crew (now acquired by Block/Square), Blink, Yoobic, When I Work, Workstream, and many others.)
But, in that context, Connecteam is among the most prominent players, with 20,000 corporate clients ranging from tiny enterprises with five employees to companies like SodaStream (part of Pepsi), Nike, and McDonald’s, and covering 200 distinct sectors, according to Connecteam COO Yuval Magid. That client base consists of about half a million monthly active users spread across 80 countries, with North America accounting for approximately 70% of the company’s revenue.
Connecteam does offer the option to those who need to integrate third-party solutions — something a larger company might want to do — but it also allows users to import data from other applications if they’re switching to Connecteam for everything.
It has also attempted to put itself in the client’s shoes in another way by focusing on making the app simple to use.
Company-wide updates, chat functionality, personnel directories, and other knowledge libraries essential for accomplishing jobs; and deskless-worker-focused operational capabilities, such as scheduling, “clocking in” for a job, task management, and so on, have all been built as part of the firm’s effort to offer a platform that can cover any and all operations. This, along with its intention to add further services like hiring — a natural addition to the present HR onboarding features — gives investors reason to be optimistic about Connecteam’s prospects.
Experts’ view
“There is no need to have several apps” when you use Connecteam, Nehemia said. “This is why we include a bunch of features.”
“The beauty of the Connecteam product is that it is incredibly powerful and versatile, yet also extremely easy for owners, managers, and employees to adopt and use,” Saagar Kulkarni, Partner at Stripes, said in a statement. “After speaking with glowing Connecteam customers who raved about how the product has transformed their businesses, it’s hard to understand how you can manage a business with deskless workers without using Connecteam. We’re proud to back an incredible team that has built such an amazing product.”
“As more companies adapt to a deskless workplace, Connecteam provides the tools and confidence managers need to be successful. With its best-in-class product and strong leadership, Connecteam has already achieved traction in more than 80 countries and continues to grow,” added Jeff Horing, Co-Founder and MD at Insight Partners. “We’re confident Connecteam will shape the future of the deskless workforce, and we look forward to our partnership as the company continues to scale up.”
