Y Combinator-backed Firstwork has secured $15 million in funding to expand its footprint in the United States and Europe.

US-based HR tech startup Firstwork has raised $15 million (over 142 crore rupees) in a Series A funding round led by Earlybird Venture Capital. The company intends to use the capital to expand its AI-driven workforce automation platform across the United States and Europe.

The round also saw participation from Legion VC and Deel Ventures, alongside existing investors Gradient and Y Combinator. This latest infusion of capital brings Firstwork’s total funding to $20 million since its inception in 2024.

The San Francisco-headquartered startup plans to utilize the new funds to grow its teams in areas such as applied AI, AI research, engineering, and go-to-market operations. Notably, approximately 80% of the company’s workforce is based in Bengaluru.

Furthermore, the company aims to deepen its presence in the US and Europe and extend its AI agents to cover a broader range of workforce operations.

Founded by former Deel executives Vardhan Kapoor and Shubham Choudhary, Firstwork leverages AI agents to automate HR operations related to frontline workers. These processes include document review, background and work-permit verification, onboarding, training coordination, compliance management, and ongoing employee follow-ups.

The startup’s platform integrates with existing HR systems, allowing employers to automate workflows without the need to replace their current software.

According to Firstwork, more than 150,000 frontline workers begin their jobs via its platform each month. The company claims that its solution has helped clients reduce the time spent by both staff and HR teams on each new hire by up to 90%. Its client roster includes companies such as Deel, Job&Talent, Relay, Wonolo, and BGSF.

AI is increasingly being adopted within the HR sector, reshaping the landscape of enterprise technology globally. While Firstwork’s primary focus is the global market, the Indian AI market—valued at $1.12 billion in 2024—is projected to more than double to $2.3 billion by 2033.

Several Indian startups are leveraging artificial intelligence to develop solutions aimed at capturing a share of this burgeoning market. For instance, Bengaluru-based Hunar.AI—which raised 40 million rupees earlier this week—utilizes conversational AI agents to automate the recruitment, onboarding, training, and retention processes for gig workers. Its client roster includes Swiggy, Zepto, Croma, Starbucks, and Dr Lal PathLabs.

Hyderabad-based TurboHire secured $6 million in Series A funding in August 2025, led by IvyCap Ventures, to expand its AI-powered intelligent recruitment platform. Founded in 2019, the startup focuses on automating enterprise hiring workflows and reports having partnered with over 120 companies, including Cipla, Tata Motors, PwC, Lenskart, and Britannia.

Other companies operating in adjacent spaces include TraqCheck, which offers AI-driven background checks and recruitment agent services, and HireBound, which provides automated solutions for candidate sourcing, screening, and assessment—competing in the same segment as Firstwork.

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