OfferZen hits 500-customer milestone, launches new pricing model for startups

A year and a half since the launch of their talent marketplace, SA startup OfferZen has blasted through the milestone of 500 companies hiring software developers through their platform.

OfferZen, which was launched in November 2015 by brothers Malan and Philip Joubert, connects companies with top software developers looking for permanent work. Employers register with OfferZen and are given access to a curated list of developers.

The startup today launched a new pricing model, in the form of monthly billing. Instead of a 12.5% upfront fee, OfferZen will take 1.5% of a candidate’s first-year salary every month for 10 months, the startup said in a press release to Ventureburn today.

The new model makes it significantly easier for startups to build development teams as it completely removes the upfront capital outlay.

“As a startup ourselves, we know the cost of finding and hiring the right talent can put a lot of strain on your cashflow,” says Philip Joubert, co-founder of OfferZen.

Companies using the new pricing model have an additional benefit as well: they only need to pay as long the developer keeps working at the company. If for any reason the employment relationship ends before the 10 months are up, OfferZen will stop invoicing immediately.

As a startup ourselves, we know the cost of finding and hiring the right talent can put a lot of strain on your cashflow, says OfferZen co-founder

Customers utilising the new pricing model are already experiencing its value and highlight cash flow, growth and aligned incentives as the top benefits, OfferZen claims.

SnapScan co-founder Kobus Ehlers said the new model reduces the company’s risk and preserves its cashflow. “This is a big win for startups in South Africa looking to grow its most important asset — high quality talent. This is just another reason OfferZen is the only recruitment company we enjoy working with.”

Prodigy Finance CTO, Simon Ward lauded OfferZen for playing a part in the disruption of the recruitment industry. “OfferZen is turning the recruitment industry on its head with this new pricing model. Not only is it great from a cashflow perspective, but it’s also brilliant that it creates aligned incentives between us and OfferZen,” said Ward.

SweepSouth is excited about the growth potential this new model encourages. Adrian Moisey, SweepSouth VP of Engineering, said the new model lets him build a tech team “a lot faster” because he doesn’t have to worry about cashflow issues with new hires. “I love the way OfferZen keeps disrupting recruitment agencies,” he added.

OfferZen’s Joubert said the monthly pricing model is open to all customers, but was designed with startups in mind. “Upfront costs often prevent startups from hiring the people they need, but with this new model we’re expecting them to be able to grow their teams much faster,” he said.

A year and a half into operation and OfferZen claims its clients already include big-name companies like GetSmarter, Takealot, Barclays, Old Mutual, Allan Gray and 24.com, as well as a host of successful startups like SweepSouth and Yoco.

Featured image: OfferZen team, with co-founder Philip Joubert in the foreground (Supplied)