Employee Engagement Startup AdvantageClub.ai Gets $4 Mn Funding From Axilor Ventures

AdvantageClub.ai, an employee engagement and benefits platform, raised $4 million in a fundraising round led by Axilor Ventures. AFG Ventures, Bytez Ventures, Alteria Capital, and a number of angel investors also participated in the round.

Sourabh and Smiti Deorah founded AdvantageClub.ai in 2016 to provide organizations with an AI-driven employee engagement platform that includes features such as rewards and recognition. The startup’s clients include Times Group, EY, and Reliance Nippon Life Insurance, among others.

AdvantageClub.ai founder and CEO Sourabh Deorah told media that the funding round is not a bridge round, although he did not disclose the identity. “We’ve stopped believing in the concept of series rounds,” he said with humor.

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The firm, which has operations in India, the United States, the United Arab Emirates, and the Philippines, intends to use the funds to expand its global reach and deepen its presence in the United States and the Philippines.

According to the company’s regulatory filing, its India entity raised around $2 million from Axilor and Alteria. Of this, approximately $1.6 million was raised through compulsorily convertible debentures. The remaining $2 million was raised by the company’s US-based organization, Deorah explained.

Responding to a question regarding the startup’s financial performance, the CEO stated, “We are on schedule to generate $8 million in sales this fiscal year. The overall GTV (gross transaction value) is projected to be around INR 1,000 crore ($118 million)”.

Prior to this fundraising round, AdvantageClub.ai secured $3.3 million from Jetty Ventures, Earlsfield Capital, and SMC Advisors, among others, in November 2021. Previously, it secured $1.7 million from Y Combinator, Broom Ventures, Kunal Shah, and others as part of the same round in 2021.

The development comes at a time when employee engagement and rewards programs are experiencing rapid growth as businesses seek ways to retain talent. Zaggle, which went public last year, began as an employee rewards and recognition platform before expanding into other businesses.

Pine Labs bought Saluto Wellness’ unique business platform last year in order to expand its staff rewards and recognition programs.