Blue Collar Recruitment Platform Vahan.ai Raises $10 Million in Series B Funding The round was led by investor Khosla Ventures and saw participation from Y Combinator, Gaingels, and Paytm

Bengaluru-based startup Vahan.ai, an AI-powered recruitment platform for India's blue-collar workforce, announced it had raised USD 10 million in its Series B funding. The round was led by investor Khosla Ventures and saw participation from Y Combinator, Gaingels, and Paytm's Vijay Shekhar Sharma.

Using artificial intelligence, it has placed over 500,000 workers in leading companies such as Zomato, Blinkit, Swiggy, Rapido, Amazon, and others in over 480 cities. Vahan.ai recruits nearly 25,000 workers monthly, leading to reductions in recruitment costs and turnaround times—setting a new bar in how AI can transform hiring processes and accelerate large-scale employment.

Vahan.ai founder Madhav Krishna highlighted that approximately 81 million (UNDP, 2009) people in urban India were living below the poverty line. Many hardworking individuals struggle to find well-paying jobs beyond their limited networks, and Vahan.ai aims to provide employment to the said demography.

"By helping over 500,000 individuals secure jobs, Vahan.ai has enabled these workers and their families to achieve greater stability, sending their children to school, accessing better healthcare, and securing daily necessities. This impact ripples through their communities, enhancing purchasing power and contributing to broader economic growth," said Krishna.

Since the pandemic, the economy driven by the blue-collar workforce has witnessed a significant jump—grew at an estimated 13 per cent in the post-pandemic years. It is expected by 2032 there will be more than 90 million jobs in the gig sector, with the value of services exceeding USD 250 billion, contributing approximately 1.25 per cent to India's GDP.

With the fresh capital, Vahan.ai aims to expand its operations into industries such as Manufacturing and Retail. It will also invest in advancing its AI capabilities. Currently, Vahan's AI Recruiter conducts interviews in English and Hindi. It plans to support eight major Indian languages and numerous dialects within the next year.

"We have come a long way from providing 600 jobs a month during the pandemic to 25,000 jobs a month now. With our impact growing multi-fold, we are excited to drive positive change and help the youth of Bharat find employment. This funding will enable us to further leverage AI, to provide these workers with unprecedented growth opportunities and elevate their professional journeys. Over time, we want to help over a billion people find livelihood," Krishna added.