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AdvantageClub.ai, the AI-powered employee engagement and benefits platform, has successfully raised $4 million in its latest funding round, led by Axilor Ventures. AFG Ventures, Bytez Ventures, Alteria Capital, and a few angel investors also participated in the round. The company has a strong presence in India, the US, the UAE, and the Philippines, and it will utilize the capital to drive its geographic expansion, focusing on the US and the Philippines.
Sourabh Deorah, the founder and CEO of AdvantageClub.ai, shared that the company no longer adheres to the conventional series round model. “We’ve stopped believing in the concept of series rounds,” Deorah told Inc42, hinting at the company’s shift away from traditional fundraising strategies.
This will be a mix of investments raised across the company’s global entities. For the India-based entity, it has secured about $2 million in funding from Axilor and Alteria, with the compulsion convertible debentures part fetching about $1.6 million. The remaining $2 million secured will be for the company’s US-based operations, which is also expected to further strengthen the company’s expansion strategy.
Expanding Global Presence and Strength in Client Base
AdvantageClub.ai, founded in 2016 by Sourabh Deorah and Smiti Deorah, provides enterprises with a holistic employee engagement platform using artificial intelligence. The platform has a rich set of features such as employee rewards, recognition, and other benefits for enhancing workplace culture and employee retention.
AdvantageClub.ai has a growing portfolio of marquee clients, including Times Group, EY, and Reliance Nippon Life Insurance, among others. With this funding, the company will further enhance its services in key markets and offer businesses a more robust, AI-powered solution to drive employee engagement.
In a statement, Sourabh Deorah shared that the company is on its way to generating $8 million in revenue this financial year. The company is also expecting its Gross Transaction Value (GTV) to reach approximately INR 1,000 Cr ($118 million), thereby marking a significant milestone in its growth trajectory.
AdvantageClub.ai is growing at a time when employee engagement platforms are in high demand, especially as organizations look to retain and motivate their talent in a competitive labor market. As companies continue to face challenges related to employee retention and engagement, platforms like AdvantageClub.ai are gaining momentum in providing solutions that make a real impact on employee satisfaction.
Strategic Focus on Employee Retention and Engagement
As businesses experience high turnover rates and the increased cost of employee acquisition, companies are increasingly looking toward employee engagement and rewards platforms to enhance retention. With its AI-driven platform, AdvantageClub.ai is perfectly positioned to fulfill these needs by helping organizations create unique, meaningful experiences for their employees.Our vision is to build an end-to-end solution for organizations to have meaningful engagement with their employees and clients,” Deorah said. “Our partnerships with leading brands offer exclusive privileges and rewards that not only keep the employees motivated but also uplift work culture in general.”
Employee engagement and rewards industry is seeing growing competition. Zaggle, which went public last year, started as an employee reward solution before expanding to full offerings. Pine Labs just acquired Saluto Wellness’s proprietary platform to beef up its own employee recognition and rewards capabilities. These acquisitions attest to the increasing demand for new products in employee benefits and engagement and help AdvantageClub.ai raise fresh capital in order to compete more aggressively in that growing market.
The funding round comes after series of investments, which included the $3.3 million raise in November 2021 from Jetty Ventures, Earlsfield Capital, and SMC Advisors and the same year’s $1.7 million investment from Y Combinator, Broom Ventures, and notable figures such as Kunal Shah. Strong in its financials, AdvantageClub.ai is now expected to grow highly and on course to scale operations in more than one region.
Founders with strong tech backgrounds
Both co-founders of AdvantageClub.ai, Sourabh Deorah and Smiti Deorah, had deep technical expertise in it. Sourabh Deorah is a master’s in computer science from UCLA with specialization in data mining and machine learning. Before the commencement of AdvantageClub.ai, he served in Amazon and Microsoft based in the US. Similarly, Smiti Deorah is also a postgraduate in computer science, a UCLA graduate, and has experiences in working at Microsoft-based in the US.
The Deorahs bring technical expertise with entrepreneurial spirit, which has been crucial in the rapid growth and success of AdvantageClub.ai. Their mission to enhance employee experience through technology is ringing a bell for organizations who are looking for innovative ways of engaging their workforce.
Future prospects
With a strong thrust into new geographies and its product offerings, AdvantageClub.ai is ready to lead the employee engagement and rewards space. The new funding will back the company in scaling out its AI-powered platform, making it easier for organizations to deliver experiences for their employees that matter and are personalized.
About AdvantageClub.ai
AdvantageClub.ai is an AI-driven employee engagement platform that enhances the satisfaction and retention of employees for organizations. Founded in 2016 by Sourabh and Smiti Deorah, the company provides rewards, recognition, and employee benefits, all powered by artificial intelligence. The company has a growing presence in the US, India, UAE, and the Philippines, working with leading enterprises to foster meaningful connections between employers and their employees.
