Vahan.ai Secures Investment from Persol Group to Transform Blue-Collar Hiring with AI

Vahan.ai, India’s AI-powered recruitment platform for blue-collar workers, has secured an investment from Persol Group, a leading HR services provider in Asia-Pacific. This partnership comes as India’s gig economy is experiencing rapid expansion, and blue-collar workers are expected to drive 70% of the country’s new job growth by 2030.

Persol Group’s investment marks a strategic move to strengthen its presence in the Indian market, which is witnessing a surge in demand for gig workers—particularly in the quick commerce, manufacturing, and retail sectors. This partnership will support Vahan.ai’s expansion and its mission to leverage AI-driven technology to make recruitment more accessible, efficient, and inclusive.

India’s Gig Economy on the Rise

According to Niti Aayog, India’s gig workforce is estimated at 9–10 million and is projected to grow to 23.5 million by 2029–30. The quick commerce industry, in particular, is seeing a 25–30% increase in gig hiring, and there is an expectation of a 60% surge in 2025 as companies expand into Tier II and III cities.

Vahan.ai has been crucial in connecting businesses with workers, facilitating over 2.6 lakh job placements across 920 cities. Major employers such as Zomato, Swiggy, Flipkart, Zepto, Blinkit, Amazon, Rapido, and Uber rely on Vahan.ai’s platform to streamline recruitment processes and meet rising workforce demands.

With Persol Group’s investment, Vahan.ai is set to expand operations into new industries, including manufacturing and retail, and advance AI-powered recruitment technologies to support eight major Indian languages and various dialects.

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Vahan.ai’s Growing Influence in AI-Powered Hiring

Vahan.ai has rapidly emerged as a game-changer in the gig economy recruitment space, founded to bridge the access gap between employers and blue-collar workers. In September 2024, the company raised $10 million in Series B funding from Khosla Ventures, Y Combinator, Gaingels, and Paytm Founder Vijay Shekhar Sharma.

Commenting on the collaboration, Madhav Krishna, CEO and founder of Vahan.ai, said, “India’s gig economy is undergoing a remarkable transformation, with smaller cities and emerging sectors driving job creation. By integrating our AI-powered solutions with Persol’s expertise in workforce management, we aim to create a more inclusive and efficient employment ecosystem. This partnership will help us scale technology, expand into new sectors, and empower millions of workers.”

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AI-Powered Hiring in India

The manufacturing and retail industries are key drivers of India’s economic growth. As part of the Viksit Bharat@2047 vision, the manufacturing sector is expected to grow from 15% to over 25% of India’s GDP, contributing $320 billion in gross value added (GVA). Similarly, India’s retail market is set to more than double, reaching $2 trillion by 2032, with e-commerce alone projected to hit $91 billion by 2029.

To capitalize on these trends, Vahan.ai is focusing on AI advancements that optimize hiring, reduce inefficiencies, and enable seamless workforce integration. The company’s AI recruiter technology has already saved over 20,000 hours of manual recruiter effort, significantly improving business hiring efficiency.

Shingo Ishida, Partner & Head of APAC Investment at Persol Group, emphasized the value of the partnership: “Vahan.ai’s innovative AI-driven recruitment solutions align with Persol’s broader strategy in India. With this investment, we aim to revolutionize talent acquisition and workforce management by integrating cutting-edge technology into hiring practices.”

Gig Hiring in India

As India’s gig workforce economy evolves, AI-powered hiring platforms like Vahan.ai are crucial in shaping its future. The company’s strategic investment in Persol Group is a significant step toward making recruitment more accessible, efficient, and scalable.

With a focus on expansion, technological advancements, and inclusivity, Vahan.ai is well-positioned to lead India’s blue-collar employment sector into its next growth phase.