MyGigsters, a platform that helps gig workers manage their financial wellbeing, has raised $1.1 million from angel investors and customers as the startup moves to launch its new embedded financial services globally.
Founded in 2021 by Benjemen Elengovan, the Adelaide-based MyGigsters has transformed from a B2C into a B2B operation servicing gig economy platforms, marketplaces and businesses that hire and manage gig workers or independent contractors.
Elengovan says the business grew 300 per cent last year, up from 200 per cent growth a year earlier, with another strong year ahead after onboarding 15 new customers globally.
“We have secured partnerships across India, Singapore and Indonesia for now and we are ready to get into these partnerships this year,” Elengovan tells Business News Australia.
The B2B model is a step-change for MyGigsters which was established as a platform directly targeting gig workers to help them manage their expenses and auto-track mileage calculations.
“Last year we went to the market with a fully embedded service for the gig economy as opposed to offering one service,” says Elengovan.
“While we started out as B2C product directly selling to gig workers giving them access to income and expense management systems, now we have grown into a B2B solution helping businesses to serve their independent contractors better.
“The customers comprise platforms, marketplaces and businesses that hire and manage gig workers or independent contractors. We just plug in behind their systems and provide financial services for their gig workers.”
Elengovan says the transformation gives MyGigsters “more growth opportunities in terms of scale, acquisition and revenue”.
The $1.1 million capital injection has been backed by Startmate, Antler and LaunchVic.
"Benji has shown the obsession with a vast problem which underpins iconic businesses,” says James McClure, partner at Antler in Australia.
“We’ve seen MyGigsters evolve and develop into a fully-fledged fintech platform, for the benefit of gig workers and their unique circumstances."
The fresh capital will support MyGigsters’ existing partnerships with clients such as Click Express, Locumate.ai, HeyLucy, Adloggs and HotGiggity, which covers delivery, healthcare, creative marketplaces and on-demand services.
Click Express is a delivery platform that uses MyGigsters to provide drivers with instant pay access and tax automation, enhancing retention in competitive markets. Adloggs is the largest delivery aggregator in India and plans to use MyGigsters to support its drivers with early pay access and embedded insurance.
Darshan Krishnaswamy, CEO and founder of Adloggs, says he is keen to play “a strategic role” in MyGigsters’ global rollout.
“With our extensive delivery network and commitment to exceptional logistics solutions, we look forward to enhancing MyGigsters’ capabilities and delivering an unparalleled experience to the global gig force,” he says.
Elengovan sees MyGigsters as primed to capitalise on the growth of the gig economy globally with the expansion aided by new regulations to protect workers in this niche sector.
“Gig workers don’t have access to benefits that traditional employees have, so governments across the world, including Australia, now have regulations to protect them,” he says.
“The platforms that hire gig workers are now in a position to have to do something about it, but the financial services that exist in the market today are not fit for purpose for freelancers or gig workers.
“Essentially, that is what we are solving. We are orchestrating a service solution between financial service providers and the gig platforms by curating providers and embedding services for these workers.”
Craig Martin, chairman of new investor Dynam Capital, says MyGigsters addresses the pain points of the industry by offering “financial stability and access to essential services that gig workers traditionally lack”.
“This is a game-changer for the industry and the people within it,” he says.
David Orth, an angel investor and customer of MyGigsters, also says the platform is bringing financial services and security to non-traditional workers.
“The key to embedding tax accounting, embedded finance mimics the benefits independent contractors would get in a nine-to-five employment,” he says.
MyGigsters notes that its embedded financial services also enable platforms to improve loyalty and reduce churn while remaining compliant.
Among the company’s growing list of customers is Locumate, a software-as-a-service hiring platform for on-demand healthcare professionals.
Locumate co-founder Surge Singh says MyGigsters has the capacity to “revolutionise the healthcare hiring process”.
“This collaboration enables us to automate and simplify critical administrative tasks such as invoicing, payments, and benefits management,” says Singh.
“By doing so, we empower healthcare professionals to focus on what truly matters - providing exceptional patient care. Together, we are setting a new standard for efficiency and support in the healthcare industry for on-demand workers."
Help us deliver quality journalism to you.
As a free and independent news site providing daily updates
during a period of unprecedented challenges for businesses everywhere
we call on your support