SA tech marketplace, OfferZen raises $5,200,000 from Base Capital
South African startup, OfferZen has raised $5,200,000 Series A funding from South African investment company, Base Capital.
OfferZen will leverage the investment to grow its team, take on the European market and expand faster.
Enabling software developers and engineers to sign up as candidates to be carefully chosen and made available to companies, OfferZen works similarly to Andela.
While the developers are advertised on the marketplace for four weeks, during which OfferZen guarantees that they’ll get contacted by different companies, they are only allowed to work permanent roles.
Initially, OfferZen operated solely in South Africa for four and a half years until April 2020, when it expanded to the Netherlands after acquiring an Amsterdam-based recruitment tech startup called TryCatch.
The company affirms to be leveraged by over 1,000 companies and 100,000 software developers who utilise its tech talent marketplace. Most of its customers from both ends of the marketplace are based in South Africa, the Netherlands, and parts of Europe like the U.K. and Germany, which are prominent hubs for global talent.
The company’s earlier expansion to the Netherlands and service provision in parts of Europe contributed heavily to its growth in the second half of this year, experiencing a 29% increase in placements between Q3 and Q4 alone.
Products offered by OfferZen include; pay-per-placement model with a one-off 12.5% fee of the developer’s first salary. If a company hires a developer for $100,000, it pays OfferZen $12,500 as commission.
The second model is an annual subscription offering for companies that recruit lots of developers at once, paying upfront for OfferZen services. The model accounts for 40% of the company’s revenue, while the rest is from the pay-per-hire model.