Startups in HR receive millions in funding despite Covid-19
Nearly all businesses are experiencing hardships because of Covid-19. However, this hasn't happened with startups in the HR industry. They are still receiving millions of dollars worth of funding.
JobHopin, a startup utilizing AI and machine learning technologies in the recruitment process, received $2.45 million worth of capital in a series A round last month.
One month before, TopCV got VND10 billion worth of capital.
Many recruitment startups received investments in the first half of the year. TopDev, which introduces workers in the IT industry, received capital from SaraminHR, while Sieu Viet Group received $34 million from Affirma Capital
Pham Van Dai, co-founder of Works.vn, which has investment from TTC Vietnam, said the attractiveness of the recruitment market comes from the expectations on the high growth rate of the market in the time to come, when Covid ends and the demand for workers increases.
|After the social distancing period, the recruitment market has become more bustling with many businesses starting recruiting workers for their production resumption plans.|
Besides TTC Vietnam, Works.vn also received capital from two other strategic investors.
According to Gaku Echizenya, CEO of Navigos Group, which owns VietnamWorks.com and Navigos Search, there are positive signs in the Vietnamese recruitment market.
After the social distancing period, the recruitment market has become more bustling with many businesses starting recruiting workers for their production resumption plans.
Gaku believes that IT, e-commerce, technological platforms and energy will recover rapidly in the post-pandemic period. He also named other production and business fields, including manufacturing (electronics, woodwork), real estate, finance and banking and some service fields such as hotel, tourism and education.
FTAs, especially EVFTA, are expected to help Vietnam become attractive to foreign investors. The tendency of relocating production bases from China to Vietnam and neighboring countries is growing.
A survey by VietnamWorks found that 60 percent of businesses said they are capable of maintaining and developing business activities.
The number of jobs offered in the first week of May, just after the social distancing weeks, increased by 20-39 percent. Meanwhile, the number of applications for jobs on VietnamWorks increased by 10 percent in June compared with the same period last year.
The increase in the number of workers seeking jobs on online channels has also led to the increase in the number of recruitment startups. The online recruitment market is diverse with recruitment channels targeting niche markets.
VietnamWorks and CareerBuilder target the high-end labor market segment, while HotelJob and TopitWorks introduces workers in some certain business fields. Getbee, Hozo app and Thichlamthem.com also target specific market segments.
Dai thinks that no online recruitment channel is powerful enough to cover the whole market. Therefore, startups tend to use high technologies or special solutions to attract users. However, most startups use Facebook for their marketing activities.
As soon as COVID-19 subsided in Vietnam, startups began to again receive capital.
Analysts believe that mentors and angel investors in Vietnam are spending time taking care of their existing investment portfolios, rather than seeking new investors.