AI powered recruitment platform for gig and blue-collar workers, Vahan.ai, is planning to launch financial services for the informal economy workers. The startup is planning to foray into micro insurance with low premium, and low interest borrowings targeted at the gig and blue-collar workers. The platform will start offering small ticket loans and insurance to the gig workers in

“Our goal is not only to help provide jobs to the gig workers, but also help them lead a good life over a period of time. We are trying to build financial services products for the gig workers,” Madhav Krishna, founder and CEO, Vahan.ai told Fortune India.

Microfinance for gig workers has potential: Krishna

“So, there is a lot of potential there. It is a new product that we will be selling, and it will generate revenue for us as a company. We are actively working on some of these products. We will be able to launch in the next three to six months,” he said.

Madhav said gig workers face high incidence of financial emergencies in life. “Let me share data with you. Gig workers face, on an average, six financial emergencies in a year. This is about one every two months. This is a very high rate. And, the most common one is family health related and accidents. And the gig workers are not insured and they do not have savings to spend on hospital bills. They end up borrowing from loan sharks,” he said.

Madhav said there is a lot of opportunity to help these people with micro insurance programmes, essentially with low premiums or help them borrow money easily with lower interest rates.

Vahan.ai to upskill gig workers

Yet another new area in which the company is working is up-skilling of the gig workers. “We are also building upskilling products so that they can also move up in life. Upskilling is another major opportunity. Anyone who does a gig does not really want to do a gig for their whole life. They do it as a stepping stone to something larger,” Madhav said.

“So, the idea is can we help them learn skills using which they can move up in life. There is a lot that can be done now,” he added.  

Vahan.ai has recently forayed into new segments like manufacturing, textile and electronics. The other segments the company is bullish on is logistics, and deliveries and consumption. As of now, the company has onboarded 3000 recruiters and plans to onboard around 2.5 lakh recruiters in the next three to four years. Madhav said there are no plans to raise funds as of now.