Phenom, a Philadelphia-based HR tech startup, announced Wednesday that it has raised $100 million in a Series D round to further its goal of helping one billion people find the right jobs.
With investors including B Capital Group, Dragoneer Investment Group, OMERS Growth Equity and GoldenArc Capital, the company, which uses artificial intelligence to match candidates with jobs, is now valued at $1.4 billion, says CEO Mahe Bayireddi, who cofounded the business in 2010 with COO Hari Bayireddy and CPO Brad Goldoor.
Bayireddi, who calls Phenom the “Shopify of recruiting,” takes a four-pronged approach to talent management, offering tools for job seekers, recruiters, employees and managers. But its business model relies on employers, including Southwest Airlines, Newell Brands and Land O’Lakes, who pay an annual fee starting at $50,000 to integrate its technology into their career sites and talent management platforms.
When it comes to hiring, recruiters use Phenom to offer candidates personalized job recommendations based on aspects like a candidate's location, browsing behavior on a career site and scanned resume in fields like technology, hospitality, media and healthcare, among others. They can also use it to source and score top talent, as Phenom’s AI summarizes the strength of a match between a resume and a job description. This is often a leading indicator of who gets an interview, according to the startup.
Once on board, employees can use its software to identify career paths, apply for open internal positions, connect with colleagues and refer others to jobs, while managers can use it to predict future hiring needs. Phenom partners with onboarding and payroll vendors like ADP and Workday to provide a seamless, integrated experience, Bayireddi says.
“Our primary difference is we have built the product with experience as the center,” he says. “We didn’t build the product for HR, we built it for the end user.”
With more than one billion candidate profiles across 180 countries, Phenom is used by roughly 400 companies. In 2020, 25,000 recruiters, talent marketers and hiring managers used its technology to hire more than two million people and engage some three million employees, according to the startup.
To customize a candidate's experience, Phenom continuously learns and responds as they interact with a conversational chatbot, upload their resume, build a profile, watch a video, or view a job description.
Courtesy of PhenomHowever, Phenom wasn’t immune to the effects of the pandemic. Last year, Bayireddi says the number of available jobs on the startup dropped from roughly one million to 750,000, and the number of people applying for each of those jobs shot up drastically. Now, coming off a year of record unemployment, those numbers are back to almost pre-pandemic levels, he says.
“The need for talent is growing,” Bayireddi says. “What we think of as the golden age of the talent ecosystem is arriving after Covid.” He cited a recent McKinsey Global Institute study, showing more than 100 million workers may need to switch occupations by 2030—a 25% increase from before the pandemic
With the new funding, he says he plans to evolve his platform’s AI to help global companies more easily understand regional subtleties when hiring and engaging international employees.
“Phenom keeps their customers several steps ahead of a workforce in rapid transformation and well-positioned to win the battle for attracting and retaining top talent,” Rashmi Gopinath, general partner at B Capital Group, said in a statement. “With artificial intelligence and a modern, data-driven approach, Phenom’s [Talent Experience Management] platform enables hundreds of enterprises to bridge the gap between people, processes and systems.”
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April 08, 2021 at 08:44PM
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HR Tech Startup Phenom Valued At $1.4 Billion After New Funding Round - Forbes
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