Jobtech firm Shomvob raises $1 million in pre-seed funding

Shomvob, a Dhaka-based B2B jobtech and HR tech platform in Bangladesh, has raised $1 million in a pre-seed funding round led by Singapore-based early-stage venture capital firm Cocoon Capital.

The company made the announcement through a press release yesterday (24 May).

Earlier, the company had also received a grant from the Bill & Melinda Gates Foundation to create access to job opportunities for the low-income women population in the country. 

The new funding will be used to develop a comprehensive Human Resources Information System (HRIS) that encompasses everything from recruitment to payroll management, streamlining HR processes, and improving access to job opportunities; particularly for historically underserved groups. 

Founded in May 2022 by Rifad Hossain, Naqib Muhammad Faiyaz, and Hasibur Rahman, Shomvob is dedicated to supporting the blue and silver-collar workforce.

Since its launch, it has registered over 600,000 job seekers and more than 1,300 companies, facilitating over 12,000 job placements across sectors like logistics, retail, and healthcare. 

Expressing gratitude for the support from Cocoon Capital and the Bill & Melinda Gates Foundation, Rifad Hossain, founder & CEO of Shomvob, said, "Their backing is crucial as we strive to transform the employment landscape in Bangladesh into one that is fairer and more efficient." 

Zong Xi Sia, investment director at Cocoon Capital, said, "We are thrilled to make our first investment in Bangladesh with Shomvob, a company whose mission and exceptional team have deeply impressed us."

"We believe this partnership marks a significant step towards creating lasting social impact in the region. We are excited to support their dedicated team as they continue to innovate and expand their transformative solutions," added Zong who recently joined the Shomvob board of directors.

Currently, over 650,000 businesses in Bangladesh face hiring challenges due to reliance on paper-based processes and information gaps, leading to talent mismatches and productivity losses of up to 30%. On the other hand, around 70 million people struggle to find suitable jobs, often falling victim to local brokers known as "dalals".

Shomvob addresses these issues by providing job seekers with a professional digital identity and a seamless application process for relevant positions. Its advanced algorithm matches candidates with suitable jobs while its Application Tracking System (ATS) offers transparent, real-time updates on application progress..