This solution can tackle the lack of skilled labour Satya Vyas, CEO, shares more about ProjectHero’s platform.
The shortage of skilled labour in construction has been one of the biggest challenges in the industry. Despite the booming growth, companies are still struggling to fill key roles on the job site and, as a result, are at risk of missing out on jobs or extending project timelines. Construction managers in India complain about the difficulty of getting enough qualified workers.
Tackling this critical issue is a Bengaluru-based startup, ProjectHero that aims to provide a platform for workers from across the country and reduce time and cost overruns owing to the lack of manpower.
In that vein, the construction industry is extremely informal in terms of worker management, order bidding and the discovery of work onsite; these were all done through word of mouth and referrals. “There was no work history or formal portfolios, allowing people to get away with doing sub-par work,” he adds. “Along with this, we also saw smartphone penetration and data consumption go through the roof. These were some factors that contributed to us developing ProjectHero; it was the right time for us.” What’s more, there has been a push from the Government to formalise the sector as well. Though the macroeconomy of the industry is not as conducive for formalising, there are massive tailwinds. The learning curve associated with technology has also shortened considerably, not just with data consumption but conducting transactions as well.
ProjectHero comes into play here. What was previously done through referrals or a labour contractor is now done by one app that cuts out the middleman. It eliminates the pain point of the supply-demand gap by giving tools to contractors and developers to float their worker requirements on the app. “By onboarding everyone onto the same platform, contractors can reach 20-25 times more workers,” elaborates Vyas. “Casting a wider net has allowed them to reach workers across the nation.”
The app is a network of contractors, subcontractors and workers. As Vyas points out, “From an economic standpoint, a subcontractor is a key player because an app such as this can add the maximum value for them.” They can find work for themselves or other workers and assess the types of orders in their area. “From a market perspective, ProjectHero is targeting the maximum number of workers on the platform,” he adds. “Once we have workers, the hardest entity on the platform, everything else will fall into place.”
To assess the skills of a worker, ProjectHero conducts simple image tests based on their trade and sub-trades, along with KYC verification. This allows contractors to gain insight into the skillsets of a worker. Similarly, workers get an idea of the financial strength of the company they have applied for and the workforce as well. On the training front, the app offers content that users can consume for free. Down the road, Vyas foresees the company also offering skilling solutions.
Vyas states that ProjectHero is primarily “a conduit for communication”. When it comes to getting people onboard, especially workers, the problem is not tech or design illiteracy. “It is a communication problem. So, we get people interested through notifications and WhatsApp messages.”
Most workers, or even contractors for that matter, would not have experienced interacting with a product such as ProjectHero. That said, a key focus area for the business has been to create trust and a safe environment for all users to interact.
The app currently sees the most demand from Tier-1 cities, especially Maharashtra and Bengaluru. Because of the massive infrastructure push from the Government, the app has also seen jobs being created in Tier-3 and 4 cities in remote parts of Rajasthan, Bihar, Uttar Pradesh and more.
Vyas believes India is a big enough market to take on at the moment. “But we are open to opportunities. Because if we are able to tackle this problem in India, the question then arises, where are the workers going from here? Expanding abroad will be in the books for us in eight to 12 months.”
On the back of the increased spending on infrastructure, ProjectHero is poised to flourish. “If India has to become a large economy, small towns will need to grow into mid-level towns, which will create more employment opportunities. ProjectHero will play an important role in this. It is a small way for us to contribute towards nation-building.”
On the business front, once ProjectHero’s network is more robust and self-propagating, the price and quality discovery in the industry would be sharper and more efficient. “Right now, roughly $5-$6 million worth of contracts are live on the app,”elaborates Vyas. “But as we move forward, we are aiming to have 10-15 per cent of the spend go through ProjectHero.”
Despite a somewhat bleak current scenario, the way ahead looks promising to Vyas. “This is the time when great companies are born and market leaders are decided,” he says. “If you have a problem and you are passionate about solving it, you should jump into it feet first.”
- Sneha Iyer