BOSTON, June 2, 2022 /PRNewswire/ -- HourWork, a SaaS recruitment and retention platform for quick-serve restaurant (QSR) franchise owners, today announced the closing of $2.5 million in additional Series A funding led by MassMutual's MM Catalyst Fund (MMCF), which joins a noteworthy list of investors including Morgan Stanley's Next Level Fund, Positive Sum Ventures, and RelishWorks. This new funding complements HourWork's oversubscribed $10 million Series A funding round completed last month and brings the total Series A raise to $12.5 million.
"It is exciting to see so much interest in fueling our mission," said HourWork Co-Founder and Chief Executive Officer Rahkeem Morris. "The dynamics of the hourly work economy have fundamentally and permanently changed, and this demands a new model for employers and employees."
MMCF, whose mission is to invest in Black-led businesses in Massachusetts as well as technology and sustainability-focused companies based outside Boston, is an investor in the company's previously announced Series A round. HourWork will use the funds to scale its customer success, sales, and marketing teams to service the explosive demand for the company's recruitment and retention solutions.
"HourWork is one of the rare startups that understands how to advance the interests of both companies and workers in this new world of work," said Diane Henry, Head of Impact Investment Funds at MassMutual. "Its impressive growth trajectory to date reflects an effectiveness in executing on that vision, delivering recognized value to companies while earning trust with workers through an unprecedented time. We believe HourWork has the potential to become a market leader and make a positive impact on the sectors of the economy that rely on hourly work, while contributing to real and sustainable well-being for hourly workers. We are proud to continue our investment in HourWork's success."
In addition to the new funding, Carla Harris joins HourWork's Board of Directors as an observer. She is the senior client advisor at Morgan Stanley and serves as the co-portfolio manager of the Next Level Fund, which invests in primarily early-stage technology and technology-enabled companies with women or diverse members as part of the founding team. Harris also serves on the board of directors for Walmart, Cummins Corporation, and MetLife.
"HourWork's vision, and the technology behind this vision, is positioned to become an important part of the future of the hourly work economy," Harris said. "Rahkeem's personal story directly informs this vision in unique ways that can benefit both hourly employees and their employers."
Founded by CEO Rahkeem Morris and COO Rob Snyder, HourWork's vision is to transform hourly work and the gig economy, providing employers with the ability to dramatically improve applicant flow, eliminate retention challenges, and match demand for labor with workers who have certified skillsets in specific areas and are available to work.
Furthermore, the company will work to change how hourly employees maximize their earnings, find work, and market their skills. Morris' personal story of dropping out of high school at the age of 14, and then working 13 hourly jobs over the course of a decade to help support his family, serves as the foundation of the HourWork mission: To save the American Dream for over 82 million wage workers that represent the majority of the workforce. Morris also drives to improve the future of work by serving as Vice Chair at the Benjamin Franklin Institute of Technology, which offers a two-year career readiness program, and was appointed to the Commission for the Future of Work for the State of Massachusetts by State Senator Eric Lesser.
Currently focused on solving applicant flow and retention challenges for QSR franchisees, HourWork has experienced explosive growth, adding 4,000 franchise locations to the platform in 2021 for a total of over 6,000 locations. This represents 5.3 million hourly workers on the platform. HourWork's customers include franchisees of some of the largest multi-unit operators across iconic QSR brands such as McDonald's, Burger King, Taco Bell, Dominos, Wendy's, and many others. The company has also recently expanded its market outside of the QSR industry with the addition of Sodexo and others to its customer roster.
HourWork offers a new, better way to hire and retain hourly workers in today's understaffed world. Its recruitment and retention platform is used by more than 6,000 quick-service restaurant franchises across the United States.