Online recruitment startup JobHopin slashes operations amid funding struggles

June 07, 2024 | 11:53
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Vietnam-based online recruitment startup JobHopin has drastically scaled down its operations to a skeleton staff to serve its remaining customers, according to Dealstreetasia.
Online recruitment startup JobHopin slashes operations amid funding struggles

“JobHopin has significantly scaled down our operations from over 200 employees to just 15, all of whom are now fully remote,” shared founder and CEO Kevin Tung Nguyen. The company has also closed its office to cut expenses.

Despite the cutbacks, JobHopin continues to serve clients such as Techcombank, SAP, Deloitte APAC, Krungthai Bank, and Avanto. The downsizing follows the company’s inability to secure venture funding to extend its operational runway.

“It’s indeed the hardest time for our company as we strive to survive, having failed to secure our Series B funding and ceased fundraising efforts since October 2023,” Nguyen told Dealstreetasia.

Founded in 2017, JobHopin uses AI and machine learning to automate recruitment. However, its competitive edge was diminished by the emergence of ChatGPT. To cope with economic downturns and a decline in the IT recruitment market, JobHopin shifted its focus to the banking, financial services, and insurance sector. Nguyen noted that long sales cycles and payment terms in this segment have led to cash flow challenges.

According to its most recent financial statement filed with Singapore’s Accounting and Corporate Regulatory Authority, JobHopin had cash and cash equivalents of $2.6 million at the end of the financial year on June 30, 2023. The company reported a negative operating cash flow of $2.3 million and a net loss of $1.7 million for the year.

In 2022, JobHopin was reportedly nearing the close of a $15.6-million pre-Series B round to expand its AI-powered platform and enter new markets such as Thailand, Japan, and South Korea. Of this amount, the startup had already secured $5.6 million in the first tranche led by Daiwa-SSIAM Vietnam Growth Fund III. The fund had intended to invest an additional $1.35 million if JobHopin met specific revenue targets.

Previously, JobHopin raised $2.45 million in a Series A funding round in 2020 and $710,000 in seed financing in 2018, with investors including SEMA Translink Investment, Edulab Capital Partners, NKC Asia, KK Fund, and Mynavi Corporation.

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By Trung Duong

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