In an important deal in the gig economy space, Awign, one of India’s largest work fulfillment platforms, has raised $24.5 million as part of its latest fundraise. Mynavi Corporation, a big Japanese HR tech company, led the funding round; it now owns a 73% stake in the entity. This opportunistic investment would further strengthen Mynavi’s presence in the high-growth Indian market and in piloting new services on the back of Awign’s strong platform.
PC: Amicus Capital Partners
Founded in 2016 by Annanya Sarthak, Gurpreet Singh, and Praveen Kumar, Awign has set the pace in innovating the way businesses run their workforce. It connects companies to a geographically dispersed network of gig workers all across India for tasks as varied as on-ground operations to digital services. Focused on flexible work opportunities, leveraging technology for efficient workforce management, Awign has grown its operations pretty fast in serving a very diverse client base filled with Fortune 500 companies and emerging startups.
Mynavi Corporation was founded in 1973 and has emerged as one of the forerunners of HR technology in Japan. The services rendered by this firm involve recruitment, staffing, and workforce solutions, hence making it an originally apt partner for Awign. As part of its larger strategy to connect with the fast-growing gig economy in India, which has been expanding exponentially due to the influence of digitalization and pressing hikes in demand for flexible working arrangements, Mynavi will invest in Awign.
The $24.5 million investment will be a deallocatory step that would be key in Awign’s next phase of growth. Raised funds will help the platform upscale its technology, increase the service offerings, and scale up operations in new markets across the country. It will develop more its AI-driven algorithms and data analytics tools for perfect matching between gig workers and employers to drive higher efficiency and satisfaction on both sides.
The increase in stake to 73% for Awign by Mynavi is deepening in nature of the partnership. It is an investment, not only monetary but also rich in HR solution synergy and technology expertise brought onboard by Mynavi. With Mynavi now fully invested in Awign, the latter can utilize the resources and help organize the operations to bring on board new services tailored for the Indian market.
The gig economy has been fast becoming a huge sector in India, with millions of workers now going for freelance and contract jobs, rather than sitting for regular jobs. This has accelerated due to COVID-19, which highlighted the requirement for flexible work and distributed workforce environments. This trend is likely to go on to benefit Awign and other such platforms that help create structured, reliable work opportunities at the very basic level of tending to the dual sides within the gig economy.
This investment thus comes in line with Mynavi’s strategy for global expansion. By strengthening its position in India, the large stake in Awign can potentially unlock entry to one of the world’s biggest and fastest-growing labour markets for Mynavi. This will also be instrumental in portfolio diversification for Mynavi, leading toward dampening the risks of high dependency on the Japanese market—challenged by an aging population and slowing workforce growth.
The funding round of $24.5 million makes for a marquee event at Awign and reflects the burgeoning confidence of investors in the gig economy’s potential. Taking the substantial stake of Mynavi into consideration, not only is Awign assured of the much-needed flows to fund its expansion but also strategic advantages with the partner that will propel it to new heights. Such relationships, as in the case of Awign and Mynavi, will therefore critically play a huge role in defining how work changes day in and day out consequent to the ever-changing gig economy while driving innovation in the HR tech space.
