Andela, Which Helps Companies Hire Remote Tech Staff, Raises $200 Million In New Funding Led By SoftBank

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The Series E financing values the startup at $1.5 billion, propelling it to unicorn status.

CIOs and other tech leaders are now more willing to look beyond traditional recruitment hubs such as Silicon Valley, India and China—and are keen to use these services to help them do so. That’s one of the things that attracted SoftBank to Andela. “Hiring remote technical talent is one of the top challenges that companies face today,” said Lydia Jett, a partner at SoftBank Investment Advisers, in a press release announcing the deal.top challenge.

“Employer hiring activity for software developers during Q3 increased 35% year-over-year, further confirming the white hot market for tech talent,” said Tim Herbert, executive vice president for research and market intelligence at CompTIA, in emailed comments to. “It serves as another wakeup call for many employers to reassess their recruiting and retention practices.

Its rise hasn’t been entirely smooth. Last year, Andela laid off some staff and several of its top executives took pay cuts as the business reacted to what it thought would be a pandemic-induced lull in tech recruitment. But the market quickly bounced back as companies doubled down on digital investments to help them weather the economic storm.

Andela plans to use some of the money it’s just raised to expand its geographic reach and to grow its 300-person workforce. It will also invest more in its technology infrastructure and look for acquisition targets. Johnson’s convinced there’s an opportunity to completely reinvent the traditional model of recruiting and was looking for more investors who share his view. “SoftBank is comfortable taking big swings,” he said. “And we believe this is an inflection point in global hiring.”

 

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