Snagajob Secures $100M in Financing for Online Hourly Work Marketplace

Snagajob

Snagajob, an online marketplace for hourly work, announced it raised $100 million in a recent funding round — money the company said it would use to expand its product offerings, including building a fully mobile, on-demand hiring process, and for future acquisitions.

The funding round was led by Rho Acceleration, an investment firm for mid-market software and digital media companies. NewSpring Capital and Invus Group also contributed funding, according to Snagajob’s press release.

Andrew Karpie, Spend Matters research analyst and in-house contingent workforce expert, said the funding round is significant due to the “enormous” amount Snagajob raised.

“We know investment has been pouring into the work platform space, but this one was a real gusher,” Karpie said.

The news is also significant as it proves there is growing interest in platforms that bring together employers (retailers, hospitality businesses) and hourly or shift workers, Karpie added. Similar to Snagajob, there is Jobaline, which also enables employer-worker connections but does not handle payments. Other services like Shiftgig and Staffly have models that look very much like staffing agencies, except they are based on digital platforms.

With these digital platforms, Karpie said, overall hiring and management processes can be more efficient, even for lower-wage service gigs.

Snagajob said it has more than 65 million members and works with nearly 200,000 employers looking to find hourly workers. The company was founded in 2000 and said revenue has doubled since 2013, as has mobile traffic.

“It’s an exciting time for our industry,” Snagajob CEO Peter Harrison said in the company's announcement. “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. 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."

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