Islington AI-powered gig economy startup Catapult nabs £4.3m
On-demand staffing platform Catapult has raised £4.3m in fresh funding, taking its total amount raised in three years to £10m.
The funding was led by Novator Partners, and supported by Dollar Shave Club and Jobbio-backer Elkstone Ventures.
The Islington-based startup uses artificial intelligence to match the skills and experience of workers to employers' requirements, with clients including Topshop, Virgin, Busaba and Paul Bakeries.
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However in a shift away from the controversy of the gig economy, workers are employed by Catapult with holiday pay, minimum wage and pay-as-you-earn taxed payroll. Catapult said this means candidates are fully vetted before being offered up to employers, while still retaining flexible working hours.
"In the current and foreseeable economic climate, the clear benefits to business are about switching your labour spend from fixed to variable costs, while at the same time providing workers with access to flexible working opportunities," said Catapult co-founder Oli Johnson.
"There are approximately 3m people working part-time in retail and hospitality in the UK. Our goal is to give them the best part-time job out there. This investment will help us continue to grow Catapult here and launch the model in new markets too."
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Currently operating on an internal staff of 50, Catapult's reach stretches across 30 towns and cities in the UK. It hopes to use this latest round of funding to expand not only into new sectors, but internationally too.
"Catapult has cracked open a large market with the on-demand work model," said Novator Partners' Birgir Mar Ragnarsson, who will also join the startup's board.
"Having invested in Catapult a year ago, we’ve seen their fast growth firsthand. In the past 12 months – they’ve scaled the business to 30 new UK cities, they’ve invested in AI and set their sights on Europe. We’re excited to increase our stake and involvement as they continue to pick up pace."