Arthum, India’s pioneering integrated operating system for managing contract workforces, has secured ₹10 crore in seed funding. The round was led by Caret^Capital, a $50 million thematic venture capital fund, with additional backing from Keynote Financial Services Limited and JS Global. This investment is set to fuel Arthum’s mission to formalize and digitize India’s vast blue-collar workforce.
Transforming India’s Workforce Landscape
Founded in 2023 by Darpan Sharma (Co-founder & CEO) and Vishal Mishra (Co-founder & CTO), the company emerged in response to the labor migration crisis post-Covid. Its mission is to bring transparency and efficiency to the contract workforce management space. Arthum’s platform acts as a unified operating system, connecting anchors, contractors, and workers on a single digital platform, thus ensuring standardized compliance, seamless payroll, geo-tagged attendance, and accurate payouts.
Arthum’s solution offers a range of core ERP functionalities, including digital payments and contract management. It also integrates statutory compliance, effectively providing a single point of access for contractors and workers alike. Over 3 lakh labour contractors currently use the platform, which has become a game-changer for this largely informal sector.
The company is also expanding into the financial inclusion space through its integrated Neo-banking platform. By leveraging verified workforce data, the company is extending financial services such as banking, insurance, loans, and investment opportunities to India’s 100 million blue-collar workers. This innovative platform enables workers to transition from informal labor to recognized, creditworthy participants in the financial ecosystem.
Accelerating Expansion and Financial Inclusion
“Arthum is an operating system that connects every stakeholder in the contract labor ecosystem,” said Darpan Sharma, Co-founder & CEO of Arthum. “This investment will allow us to strengthen our technology, expand geographically, and drive financial inclusion by leveraging data-driven credit and banking solutions. We’ve onboarded over 1,500 labour contractors and 6 lakh+ workers across Delhi NCR, and we are now planning to expand into Dehradun, Chandigarh, Ludhiana, Jaipur, Ahmedabad, and other industrial hubs.”
Caret^Capital, a prominent investor in this seed round, has high hopes for Arthum’s ability to drive significant changes in India’s blue-collar workforce. “By investing in Arthum, we aim to formalize India’s 120 million+ blue-collar workers and integrate 300,000+ labour contractors into the formal economy,” said Pankaj Bansal of Caret^Capital. “Arthum’s combined approach of workflow automation and financial enablement has the potential to redefine the way contractors and workers interact with enterprises and financial institutions, perfectly aligning with our objective of supporting 10 million jobs.”
Strategic Partnerships Driving Growth
Arthum has formed strategic partnerships with some of India’s leading banks and financial institutions, including Yes Bank, ICICI Bank, and IDFC, along with more than 15 non-banking financial companies (NBFCs) such as Ugro Capital, Bajaj, Aditya Birla, Godrej, BlackSoil, and Protium. Together, they aim to co-create affordable, customized financial products that address the unique needs of blue-collar workers.
What sets Arthum apart from its competitors is its holistic, full-stack approach. While many players in the market are either focused on workforce management or financial inclusion separately, Arthum combines both, enabling a seamless integration that drives efficiency, reduces payment errors, and fosters transparency. This unique positioning helps Arthum stand out from traditional, non-digital, and non-integrated workforce management solutions.
A Data-Driven Future
By building digital identities for millions of workers, the company is paving the way for greater scalability, trust, and transparency within India’s blue-collar ecosystem. The platform’s integration of workforce management and financial tools reduces operational gaps, while ensuring compliance and enabling easier access to benefits like loans and insurance.
“Arthum is working toward a data-driven future for India’s workforce. Through our technology, we aim to create a connected ecosystem that empowers millions of workers and contractors to benefit from financial inclusion and better work conditions,” said Darpan Sharma.
About Arthum
Founded in 2023, Arthum is India’s first integrated operating system for contract workforce management. The platform unifies anchors, contractors, and workers on a single digital infrastructure, enabling transparent operations, standardized compliance, and accurate payouts. Through its Neo-banking partnerships, Arthum leverages verified workforce data to provide banking, insurance, credit, and investment access to millions of blue-collar workers and contractors. Arthum is transforming India’s informal workforce into a formally recognized, digitally connected labor force.
About Caret^Capital
Caret^Capital is a $50 million sustainability-focused venture capital fund investing in startups with the potential to reshape key sectors such as Jobs, Smart Mobility, and Distribution & Supply Chain. The fund aims to support category-defining companies that will represent a significant portion of India’s growth story by 2030. Caret^Capital’s mission includes creating 10 million jobs and reducing 10 million metric tons of CO2 emissions.
