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Connecteam Raises $120M to Support the Deskless Workforce

March 04, 2022 Digital Workplace
Mike Prokopeak
By Mike Prokopeak

Connecteam, a Tel Aviv, Israel-based tech company that provides a workforce management app aimed at deskless workers, announced on March 2 that it raised $120 million in a Series C round of funding.

The company plans to use the new funding to expand operations across the globe, triple the size of its team, and invest in research and development and marketing. Despite the existence of sophisticated software to automate back-office tasks and manage salaried workers, there's been comparatively little investment in improving the experience of deskless workers and those who manage them, said company officials.

“Connecteam’s rapid growth is facilitated by demand from a new generation of managers who are keen on doing things differently: real-time, trackable, measurable, digital. Managers who are no longer willing to accept the old fashioned ways of running a frontline business,” said Amir Nehemia, Connecteam CEO and co-founder in a statement.

The Growth of Frontline and Deskless Worker Software

Up to 70% of the global workforce are frontline employees, according to the National Bureau of Economic Research. Traditionally, they've been ignored as firms invested in technology for office workers and professional staff. But the massive investment in workplace technology over the last two years has begun to spark a "quiet revolution" that is connecting deskless employees through a combination of BYOD policies, widespread issuing of iPads and devices in retail and hospitality and the use of handsets for scanning, according to Sam Marshall of ClearBox Consulting.

"All of this creates a fantastic opportunity for businesses to engage workers in a way that previously had been thwarted by basic technology blockers," he wrote back in October 2020.

This opportunity has led to the creation of workplace apps that go beyond the traditional time clock used to track when workers clock in and out for shift work. HR software vendors are now paying more attention to how their products contribute to the employee experience in ways that go beyond simple workflows and automation of HR processes. 

The first generation of apps to serve frontline workers generated little fanfare, but succeeding generations are getting more streamlined and customized. The latest tools fall into four broad categories: communication, operations, HR and people engagement, and digital workplace.

How Managers Can Use Connecteam's Deskless App

Connecteam's app includes features for tracking time and attendance, communications, learning and training, and employee recognition and is, according to the company, customizable to serve the needs of companies of any size without the need for IT support.

“Employees and managers alike crave high quality tools and experiences in their work life," Nehemia said in a statement. "I strongly believe that any deskless business must have an app to run their operations, and that is why we also offer a fully free tier so everyone who needs it can use it.”

Paid lower tier plans start at $39 per month and scale up to tailored plans for global enterprises. Product features include:

  • Operations: Time tracking, scheduling, checklists and forms and task management.
  • Communication: Internal chat, an organizational directory, and features to promote updates and announcements and launch surveys.
  • HR and people management: Recognition and rewards, employee documentation management, and training and skill building features.

Venture Capital Investors Stepping Into a Growing Market

Founded in 2016, Connecteam said it has more than 20,000 customers across 80 countries. Clients include SodaStream, Sodexo, Saint Gobain and Berry Global. The company last raised a $37 million Series B round in April 2021 and reported it has seen 400% growth year over year in the past two years.

The latest funding round was led by Stripes, a New York equity firm, and venture capital firm Insight Partners. Additional investors included Tiger Global, Qumra Capital, and Eyal Ofer’s O.G. Tech. This Series C round brings Connecteam’s total funding to $160M.

Deskless and frontline worker-focused technology firms have seen a boom of late. Paris-based Snapshift landed $45 million in February 2022. Skedulo and YOOBIC raised $75 million and $50 million, respectively, in July 2021, and London-based mobile training platform EduMe landed $20 million in January 2022, according to Crunchbase.

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