With 55 per cent of Indian companies hiring through employee referrals, this platform is clearly gaining popularity in the market.
Job referral website, Happy2refer, which was launched in September 2015, has managed to get an angel funding of $0.25 million, which is equivalent to Rs 1.67 crore. The money will be used to improve the product, algorithms, user experience and also to market the brand. Equity Crest, Vinners, Sparknext and a few other independent investors have seed funded this venture.
Employee referral platforms are gaining popularity in the market. In 2015, when respondents from Indian companies were asked by LinkedIn to name the most important source for quality hires made in the past 12 months, 55 per cent of them said it was through employee referrals. Last year, LinkedIn had acquired Careerify, a Toronto-based startup that deals in software related to employee referral.
Last year saw the launch of another employee referral network, SkilledTree, which allows users to share jobs within the employee circle.
The staffing industry in India is estimated to be around Rs 2,800 crore. Currently, only 10 per cent of people are hired through referrals.
The company aims to turn the hiring process by rewarding users who refer talent to any company on the platform and can earn incentives.
Nimit Bavishi, founder, Happy2Refer, says, “We have built a disruptive model that creates a viral win-win experience. If one works in pharma sales, one is best suited to understand a pharma sales job requirement. Ideally, one should be empowered to discover and refer five great-fit people from one’s network in 30 seconds and get rewarded if one’s referral makes it.”
The company estimates that people can earn 20–30 per cent of their annual salary from making the right referrals, which gives HR a pool of high-quality curated profiles to look at.