SA talent marketplace startup OfferZen raises $5.1M Series A
South Africa talent marketplace OfferZen has completed a $5.1 million Series A led by South Africa investment company Base Capital. This is its first funding round since its formation in 2015.
OfferZen was co-founded by Philip Joubert, Malan Joubert, and Brett Jones. In April 2020, the company expanded to the Netherlands after acquiring Amsterdam-based recruitment tech start-up TryCatch. According to the CEO, over 1,000 companies and 100,000 developers have used the programme thus far.
The funds will be invested in the local tech community to grow its product, operations, and growth teams when deepening the expansion across Europe. OfferZen is looking further to expand to two additional countries.
Revenue model
As per a TechCrunch article, OfferZen has an interesting revenue model where it makes its money via two avenues. The first is a pay-per-placement model where a one-off – 12.5% fee is paid from the developer’s first salary. On the second model, a subscription offering is given for companies that recruit lots of developers at once where they pay upfront for Zen’s services. OfferZone also has a pay-per-hire revenue model. talent
The company is working towards building engaged developer communities through events, tech community sponsorships, content, and developer reports. As a developer, you get admitted to the OfferZen community when you are ready to find a job. This means companies only access ready-to-hire developers. Philip Joubert revealed that the “massive growth in venture capital raised” and “explosion of demand for tech talent” was the vision behind doubling down their vision.
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