Startup Connecteam Raises $37 Million to Enhance Its Employee Management App Used by Nike

By Adriaan Brits Wednesday, April 28, 2021

Employee management startup company Connecteam announced it raised $37 million in a business financing round led by Insight Partners, O.G. Tech, and Wix’s leadership team. Following today’s announcement, the startup company said it has raised $40 million so far at a post-money business valuation of over $100 million.

An employee checking for messages on their phone.

Managing Deskless Employees

The startup company has developed a smartphone communication app that is used by employers to communicate with and train employees across a number of business sectors, including retail, construction, and manufacturing.

The app is used by some major companies like Nike, Sodexo, and SodaStream; however, the majority of the company’s 10,000 clients are small, family-owned, or independent businesses. The paid version of Connecteam starts at $39 per month, but there is also a basic version that is free.

"We have built the platform from the ground up to meet the needs of organizations with frontline employees. Most people don't realize it, but deskless employees comprise 80% of the global workforce - 2.7B employees around the world," Amir Nehemia, CEO of the startup, said in a press release.

Connecteam is also used by deskless employees to schedule shifts, clock in and out, issue operational reports, and more. On the other hand, employers use the app to train and onboard new workers, but also to talk to them, create live polls, announcements, etc.

"So many organizations still rely on bulletin boards, phone calls, printed spreadsheets, and face-to-face training to run their businesses. We have plans to change that and help organizations and their employees improve communication, work processes, and collaboration,” Nehemia, who is also one of the co-founders of the startup, added.

Even though a number of businesses that used Connecteam have closed operations as a result of the pandemic, the companies’ growth did not slow down. Instead, the business customer base last year rose by over 400% after a sharp increase in usage by security and cleaning industries. The app is now used by 150,000 active consumers across more than 60 countries.

The potential for the startup company is huge, Nehemia believes, given that 80% of the workforce in the world is deskless. Moreover, there are not many apps out there focused on deskless blue-collar employees that also take their preferences into account.

Even though the majority of users can speak English, some of them are not able to write and that’s why Connecteam introduced a voice recording feature to make it easier for these workers. Taking these users’ preferences into account is also what attracted Wix’s CEO Avishai Abrahami to back the company.

“I am not surprised to see its accelerated growth: it has the right mindset, an outstanding product, and a vast market that is pro-actively looking to do things differently as they are tired of the old ways. I believe we are going to hear much about Connecteam in the future,” he said.

Other global remote onboarding apps including Deel and Remote have also seen outstanding business growth last year, as well as the workforce marketplace startup company Shiftsmart.

Summary

Employee management startup Connecteam secured $37 million in a new funding round to exceed a business valuation of $100 million.

About the Author


Headshot for author Adriaan Brits
As an analyst of global affairs, Adriaan has an MSC from Oxford, with diverse interests in the digital economy, entertainment, and business. He is a specialist trainer in Advanced Analytics & Media.

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