By Niket Nishant
June 27 (Reuters) - KarmaCheck, a background-checking startup led by LinkedIn co-founder Eric Ly, has raised $45 million in a funding round led by Parameter Ventures.
The San Francisco-based company said on Thursday that it will use the funds to accelerate the development of its technology and "expand into industry verticals."
WHY IT'S IMPORTANT
KarmaCheck is among a host of companies looking to use technology to streamline complex, labor-intensive or repetitive HR tasks.
The demand for services like criminal background checks and education verification, integral to the hiring processes of most companies, has surged after the pandemic made remote working popular.
CONTEXT
KarmaCheck's clients include Domino's Pizza DPZ.N, McDonald's MCD.N and various players in the healthcare and gig economy industries among its customers.
It claims to deliver results twice as fast as the traditional methods for such checks.
NextView Ventures, PruVen Capital and Velvet Sea Ventures also participated in the company's latest funding round.
Founded in 2019 by Eric Ly, LinkedIn's founding CTO, KarmaCheck has grown to over 100 employees and reported a seven-fold revenue increase in 2023.
Its competitors include Checkr, First Advantage FA.O and Sterling Check STER.O. First Advantage agreed to buy Sterling in a $2.2 billion deal in February.
KEY QUOTES
"Background checks and credentialing has been one of the most lengthy and frustrating parts of the hiring process," Ly said.
"It has been one of the major friction points for both employers and candidates seeking jobs."
(Reporting by Niket Nishant in Bengaluru; Editing by Tasim Zahid)