Frontline workers and other non-desk-dwellers are finally getting the attention they deserve in a new generation of office productivity apps, after years of being ignored.
In the most recent development, Connecteam, an all-in-one app that offers communications services, scheduling tools, and management of daily operations (such as virtual time cards and scheduling), has raised $120 million. The money will be used to hire more clients and to keep adding services to its platform, one of which is recruitment, which is now lacking.
This Series C round, which was co-led by Stripes and Insight Partners, also included participation from Tiger Global, Qumra Capital, and O.G. Tech. Although Connecteam withheld its valuation, its CEO and co-founder Amir Nehemia suggested that it was standard for a Series C round. According to a reliable source, this round’s valuation is just over $800 million.
Connecteam, which was established in Israel (and continues to operate there but is legally headquartered in New York), only just completed a $37 million Series B round of funding. However, as a telling sign of the times, the startup has been experiencing a growth spurt. It is due to the increased attention being paid to deskless workers—who are estimated to make up about 80% of all workers globally—and the increased investment in technology that businesses have made to make those teams’ tasks more efficient. Due to last year’s 400 percent increase in revenues and company, which is expected to continue this year, investors became interested, and this growth round was initiated.
Building technology for frontline and other unanchored workers has become more competitive, with platforms or more general-purpose approaches. These compete more directly with Connecteam and use tech to address specific functions (e.g., EduMe building a training and online learning platform, or Meta’s Workplace honing its focus on one-to-many internal communications and conversations).
Among them are Flip, which announced an investment after reaching 1 million users last month, Snapshift, Microsoft Teams, Crew (now owned by Block/Square), Blink, Yoobic, When I Work, Workstream, and numerous others.
But in that environment, Connecteam is one of the main players, currently serving 20,000 corporate clients that range from tiny firms with five employees to businesses like SodaStream (a division of Pepsi), Nike, and McDonald’s, encompassing 200 different verticals, according to COO Yuval Magid. With 80 different nations represented in that customer base, there are over 500,000 active users each month, albeit currently, North America represents 70% of the company’s revenue.
Beyond that, the firm is prospering because it’s capitalizing on a contemporary preference for purchasing multi-functional goods rather than point solutions, which makes both the app and IT budget simpler to manage.
Beyond that, the firm is prospering because it’s capitalizing on a contemporary preference for purchasing multi-functional goods rather than point solutions that make the app and IT budget simpler to manage.
The ability to import data from other software is something that Connecteam customers have if they are moving to use Connecteam exclusively. Connecteam does offer the option for those who require it to connect third-party solutions, something a larger organization may want to use. When using Connecteam, Nehemia noted, “there is no need to have many apps.” “We incorporate a lot of features because of this.”
He claimed that whenever he inquired about their staff size, they would always say they were unaware of the number. It turns out that people were employing a patchwork of methods to respond to that issue regularly due to modern scheduling and labor dispersion, as well as the advancing obsolescence of “clocking in” via a physical machine. Some people would “watch CCTV” to determine who was where or whether they were acting under their stated intentions. Before trying to offer training to those teams, it felt like a bigger opportunity for the company to tackle first. Thus, that is how Connecteam got its start.
The company’s strategy of offering a platform to cover any function has so far resulted in the development of about 14 different features, which include some of the training technology it had developed for the previous startup iteration. These include company-wide updates, chat functionality, employee directories, and other knowledge libraries necessary for performing jobs, along with deskless worker-focused operational tools to manage scheduling, “clocking in” for a job, task management, and so forth. Investors have a lot of hope in Connecteam because of this combination and its plans to add capabilities like recruitment, which are a natural complement to the current HR onboarding features.