A new recruitment startup backed by Spotify investors receives £6.1m in funding

A new London-born startup app, Syft, which cuts out the need for traditional agencies with marketplace staffing, has closed its Series A investment funding round for £6.1m.

The round was led by Spotify’s first investors Creandum, and included backing from David Haye, Lord Young and PROfounders Capital and Colle Capital, taking Syft’s funding to an overall £8.7m in 20 months.

The company was launched in 2015, and offers an online staffing platform for the hospitality and events sector in London, Manchester and Leeds. Syft gives employers direct access to fully-trained staff via the app rendering it cost and time-effective.

Johan Brenner, general partner at Creandum and who also has been appointed onto Syft’s board of directors, said: “Syft has become the best marketplace for temp workers thanks to a product that fits companies of all sizes and workers with varying skill sets.

“What sets Syft apart is a winning combination of a top-notch team, excellent product and a model that addresses all the shortcomings of traditional temp agencies.”

Syft allows employers to view a range of job seekers with varying experience at an average cost of 55 per cent less than a traditional temp agency. In under two years, Syft has drawn over 4,000 job seekers to the app who have benefited from the startup’s transparency.

After a few swipes on the app, job seekers can be added to the rota for shifts that pay, on average, £9.37 per hour in London. Other positions available include bar staff, waiting staff, receptionists and team leaders, that can pay up to £30 per hour.

The platform also handles payroll and tax obligations, with the employer being able to pay staff wages and National Insurance contributions through the app.

All job seekers are fully vetted in person, then after being approved they will be offered work via a push notification on their smartphone, as and when the work is posted, which could be in advance or last-minute.

The startup now plans to utilise the recent raise to catapult expansions into the warehousing and industrial sectors, and deliver expansions into Liverpool, Leeds and Birmingham.

Jack Beaman, Syft’s co-founder, commented: “Attracting a fund of the standard and reputation of Creandum is not only very exciting for us, but also for the UK startup scene. It’s exciting that we continue to see large funding rounds after the Brexit vote.

“This round will help us consolidate our position in the UK, expanding nationwide and launching new sectors.”