Action for Impact
Dialogue with Chandrashekhar Mandal, Digital Labor Chowk
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1 Your solution is addressing a unique problem statement, as it looks to empower migrant workers. Could you share with our readers how you decided upon this business idea?
What are some of the features of your business model through which you aim to address the employability issue faced by migrant workers?
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DLC is building an ecosystem for the daily wage and domestic workers, with our solution, all the daily wage and domestic migrant construction workers can connect with the unlimited job opportunity of PAN India via one mobile application.
Key Features:
- Automatic Resume creation and Job Matching Technology: - We use advanced technology to build the resume on the base of work history and our job matching algorithms that connect workers directly with construction job opportunities, enhancing their visibility and accessibility based on their eligibility criteria and location.
- Skill Development Program: - We have collaborated with government and private organizations and developed the skill wise courses and work training content for the worker to provide skill development programs for workers, enabling them to upskill and stay competitive in the job market.
- Financial assistance & government support: - We have facilities in accessing financial assistance (credit, investment and other facilities) & government support (Ayushman Bharat, PM-SYM, PM-JJY etc) to registered workers to meet their financial needs in case of difficulties.
- Minimum wages bar: With our advanced technology we have put the state wise minimum wages bar so that no worker gets the least wages, also we take care that workers are getting necessary facilities at the working site, we also use blacklisting facilities for workers and customers.
- Simplifying Hiring Process: - We facilitate a transparent and efficient hiring process for construction companies, allowing them to directly connect with an unskilled and semi-skilled workforce and vice versa so that they can fix and negotiate to optimize their operations, and address their labor shortages.
- Gender Equality: - We uphold the principle of gender equality, ensuring equal opportunities and fair treatment for both men and women workers.
- Digital Literacy Initiatives: - We operate a Kiosk center named Sahayata Kendra in highly migrant people areas to improve digital literacy among workers. We educate workers about digital platforms, empowering them to make informed decisions related to job opportunities, insurance, and government schemes.
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2 How have you built your supply chain, both on the side of the migrant workers as well as the construction companies? Are there any public or private partnerships that you have built or intend to, as you look to reach and expand your target market?
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Following are our engagement approach for customer and workers
Strategic Worker Engagement Approach
Online mode
- Through Social Media.
- Through Short Media platform (Video Content)
- Through SMS, IVR, Whatsapp & Calling.
Campaigning (Offline)
- Campaigning on labor chowks and labor-oriented local/slum areas.
- Organizing Job fair in the panchayat.
- Skill program camps to upgrade their skills.
Sahayata Kendra (SK)
We have Sahayata Kendra i.e. KIOSK and where workers can get themselves registered. It helps create trust and awareness among workers, increase awareness of the job, and helps deploy them.
Business Associate - Sahyog Sahayata Kendra (SSK)
We appoint Retailer & Common Services Centers (CSC) as our SSKs in various cities, slum areas, panchayats & villages. They register and deploy workers on an incentive basis.
Collaboration
- For skilled workers, we collaborate with ITI and polytechnic colleges.
- For engineers, we collaborate with b.tech CIVIL colleges.
- We locally collaborate with the district employment center and organize job fairs there.
- Locally we also collaborate with SHG group, Mukhiya, and ward members for workers gathering and registration.
- Government collaboration:- MGNREGA (Mahatma Gandhi National Rural Employment Guarantee Act), every state BOCW (Building & Construction Welfare Board), States Department of Labour and District Disaster Management.
Strategic Customer Engagement Approach
Contractors & Small Construction Companies:
- Data Collection: Gather data from government sources (PWD, CPWD, MCD) and platforms like Google to identify potential clients.
- Tender Listing Websites: Monitor tender listing websites (Tender tiger, BIADA, CIDC, Tenderdetail.com) to generate leads based on projects.
- Local Contractor Networks: Engage with local contractor networks, particularly on Facebook groups, for targeted outreach and information sharing.
- Social Media Promotion: Utilize social media platforms like YouTube to share valuable content and promote services.
Large Construction Companies (Pvt. Ltd. & Ltd.):
- LinkedIn Targeting: Implement targeted outreach on LinkedIn to connect with decision-makers in relevant companies.
- Database Marketing: Utilize a comprehensive database of companies and projects to personalize outreach efforts based on location and industry.
- Industry Events: Participate in construction events and fairs to network and showcase solutions in person.
Yes, we have done following partnerships
- Collaboration with 10+ ITI and B.tech colleges.
- Signed MOU with 3 big corporations to provide workers directly to the work site.
- Collaborated with many district employment centers, Bihar disaster management, NGOs and SHG to create awareness amongst migrant workers about our solution, job, govt benefits, etc.
Support required in Partnership & Collaborations
- We are looking for Collaboration with organizations like Jan Sahas, TWIC, Habitat of Humanity, Migrant resilience collaborative, etc for extending our facilities to the workers connected with them.
- For hiring of skilled workers, we are looking for collaborative opportunities with ITI, polytechnic and CIVIL colleges for direct recruitment.
- We locally collaborate with the District employment center and organize job fairs to hire unskilled and semi-skilled workers looking for jobs. We collaborate with SHG groups, Mukhiya, and ward members for workers gathering and registration.
- Government collaboration:- MGNREGA (Mahatma Gandhi National Rural Employment Guarantee Act), every state BOCW (Building & Construction Welfare Board), States Department of Labour and District Disaster Management.
- We are also looking for collaborative efforts with the Construction Skill Development Council, National Skill Development Council, Bihar Skill Development Council etc for skill development and skilled hiring.
- As a part of CSR by Construction sector companies like Ambuja Cement, L&T, Tata Projects etc, we are expecting to enter into partnerships for skill development of laborers and their overall upliftment.
- We are looking for NGOs who have the aims to provide employment opportunities to the lower sections of the society.
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3 We do read of other tech-enabled solutions that are working to connect India to government welfare schemes.
How does Digital Labour Chowk differentiate itself, both in terms of technology as well as execution? What would you say is your USP?
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Digital Labour Chowk (DLC) itself isn't directly involved in connecting people to government welfare schemes in India. Their primary focus is on connecting blue-collar migrant workers with job opportunities in the construction sector, but to enhance their experience and provide more facilities benefits, we are initially collaborating with the companies who are working in this domain (skill development, financial assistance and govt benefits, etc).
Job is a necessary thing and that is the reason we are very confident that there are major possibilities if we would be able to provide them a continuous job with better wages and facilities, above things we can cross sell to them very easily.
As soon as we start to get a handsome response on cross sale products, we will start to acquire new businesses who are working in the above line of facilities business.
Digital Labour Chowk (DLC) differentiates itself in the construction industry recruitment space through a combination of technological innovation and strategic execution.
Technology:
- AI-powered Matching: DLC utilizes AI algorithms to match worker skills and experience with relevant job opportunities, ensuring a better fit for both parties compared to traditional methods and help to create automatic resume/profile to build credibility in the virtual world.
- Geolocation Integration & Limitless opportunity: By connecting workers with nearby projects, DLC minimizes travel time and maximizes earning potential for workers and opens all the boundaries to search self-skill-wise jobs in his desired city before migrating from self-states.
- Focus on Data Collection: DLC prioritizes building a comprehensive database of worker skills and experience through structured onboarding processes and mobile skill assessments. This empowers workers to effectively showcase their abilities and fuels optimal AI matching.
Execution:
- Focus on Transparency: DLC promotes fair wages, transparent working conditions, and ethical recruitment practices, giving workers a voice and restoring dignity to the profession.
- Building Partnerships: DLC actively seeks collaborations with construction companies, worker associations, and government agencies. This expands their reach, fosters trust within the industry, and validates their platform.
- Skill Development & Financial Inclusion Initiatives: DLC goes beyond job placement by exploring partnerships with training providers to offer relevant skill development programs and banking facilities directly through the platform, further empowering workers.
Digital Labour Chowk (DLC) is a unique and disruptive platform that focuses on blue-collar workers in the construction industry, especially migrants. DLC’s USP are
- Specialized Focus: DLC is the only platform that exclusively caters to the needs of blue-collar workers, particularly migrants in the construction & domestic homes work. This focused approach enables us to customize our services to suit this specific segment.
- End-to-end Solution: DLC provides a complete solution that covers the entire employment cycle of construction workers. From job search and placement to skill development, we offer a range of services unavailable in traditional labor chowks or generic job portals.
- Transparency and Trust: DLC ensures transparency in the recruitment process, providing clear and accurate information about job details, wages, and working conditions. This transparency fosters trust between workers and employers. Workers and customers can communicate with each other after expressing interest.
- Skill Development Initiatives: DLC goes beyond job placement by offering skill development programs for workers. This commitment to improving workers’ skills differentiates us from other platforms, enhancing their long-term career prospects.
- Safety and Fair Working Conditions: DLC collaborates with industry partners to advocate for safer and fairer working conditions and wages for workers, addressing the key challenges faced by blue-collar workers.
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4 Can you help our readers understand the monetization model of your business? How do you intend to build scale in your business along with financial sustainability?
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Following are our monetization methods:
1. Subscription
DLC Subscription plan ranges from 499/- to 9999/- INR and with subscribe plan customers can connect & post jobs. We offer various tiers of subscriptions, each tailored to different scales of operation and budgetary considerations. Employers can choose the plan that best suits their needs, with the flexibility to upgrade as their business grows.
Type of subscription
- Subscription plan (Tenure and impression-based)
- Booster plan (slider, home, poster, notification, etc)
- On-demand bulk data
2. Premium Services
Digital Labour Chowk offers premium services to only selected companies (Ltd & Pvt. Ltd) having good cash flow and positive due diligence reports. In this scenario, we deploy direct workers at working sites at 50-100 INR/worker/day and provide supervisor/foremen support for quality & performance assurance.
- On each 20 workers an experienced Foreman having qualification of ITI or Civil (B.Tech) for quality assurance.
- On each 60-80 workers an experienced Supervisor having qualification of Civil (B.Tech) for quality assurance.
3. Promotion & Ads
We do promotion and run ads for our niche companies over our platform.
Note: At our platform, we don’t charge anything from the migrant workers, now all the facilities for the workers are charged free.
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5 What steps are you taking to ensure the credibility and verification of data shared through your platform? Does technology play a role here? If yes, how?
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To ensure the credibility and verification of the data shared through our platform, we employ a multi-step process. Currently, our operations team manually verifies the skills and other details of the workers through a comprehensive calling process. Additionally, we request workers to provide their kyc document, and we cross-check their information against it to ensure accuracy. We further enhance credibility by checking if workers possess their MGNREGA, labor card, or any other government-approved identification cards.
Technology also plays a significant role in our verification process. In the future, we plan to integrate the KYC API to automatically cross-check the data provided by users in the app with their original kyc document. This technological enhancement will streamline the verification process, making it more efficient and reliable.
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6 Can you provide us an overview of your fundraising journey so far? Additionally, can you help our readers understand your near-term fundraising plans? What kind of support are you looking for from the Construction Innovation Hub? (Market partnerships, Follow-on-funding, etc.
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Award amounts
- Citi Bank (1 Million INR (Indian Rupees) - Won the Social Innovation Lab challenge under the Fintech domain.
- Hitachi India (3 Million INR) - Won the National innovation challenge under Banking the unbanked people.
- Migrant Resilience collaborative (5 Million INR) – Won the tectonic-innovations-for-future-ready-migrant-workforce under the Jobtech platform
- Terwilliger Center for Innovation in Shelter (1.5 Million INR) – Won the Construction Innovation Hub under the construction Tech platform
Grants & Government loan
- CM Udyami Yojana - 1 Million INR (half is grant and half is at zero percent interest)
- Startup Bihar - 1 Million INR (at zero percent interest)
- Startup India seed fund scheme - 1.5 Million INR (at Repo rate)
Equity funding
- We have raised 50 lakhs INR pre-seed round funding in Sept 2022 from Campus Fund VC.
- We have raised 100 lakhs INR seed round funding in June 2023 from Japan Syndicates.
Funding ask
- We have opened our 3rd round of funding and In this round we are raising 1 Million USD.
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7 As you look to build scale, apart from capital what are some of the other areas of support or partnerships that you are looking for?
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Here are some areas of support or partnerships DLC can look for beyond capital, as they focus on building scale:
Data and Skill Development:
- Government Agencies: Partner with government skill development initiatives to access pre-trained worker data and potentially offer these programs directly through the DLC platform.
- Training Providers: Collaborate with training providers to offer relevant skill development courses and certifications to DLC users. This not only upskills the workforce but strengthens the platform's value proposition for both workers and companies.
Industry Expansion and Recognition:
- Construction Industry Associations: Partner with industry associations to gain access to their membership base and expand DLC's reach amongst construction companies.
- Academic Institutions: Collaborate with academic institutions conducting research in construction or related fields to gain valuable insights and potentially develop solutions that address industry challenges.
Worker Outreach and Support:
- NGOs: Partner with NGOs working with blue-collar workers to expand DLC's user base within these communities and leverage their expertise in reaching marginalized demographics.
- Community Leaders: Collaborate with local community leaders to promote DLC's platform and address any concerns or hesitations workers might have about using a digital platform.
Technological Expertise and Innovation:
- Tech Companies: Partner with tech companies to explore innovative solutions for data collection, AI matching algorithms, and mobile app development to further enhance the platform's capabilities.
- Data Analytics Experts: Collaborate with data analysts to gain deeper insights from the data collected through DLC, identify trends, and optimize the platform for better user experience and outcomes.
Additional Areas:
- Media Partnerships: Partner with media outlets in the construction sector to secure coverage and raise awareness about DLC and its mission.
- Financial Institutions: Explore partnerships with financial institutions to offer DLC users access to microloans or financial literacy training, promoting financial inclusion for blue-collar workers.
By seeking these partnerships and support structures, DLC can address key challenges associated with scaling their operations. This will allow them to expand their user base, refine their platform's functionalities, and solidify their position as a leading force in transforming the construction industry.
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Chandrashekhar Mandal, Founder, Digital Labor Chowk
Chandrashekhar Mandal (Founder of DLC), has 7 years of experience and a strong track record in impact-focused initiatives. He has excellent leadership skills, strategic thinking, and a deep understanding of market dynamics. Coming from a small village in Bihar, Chandrashekhar has a firsthand understanding of the struggles faced by blue-collar workers in India. He is a visionary leader who uses technology to connect most vulnerable working class with work. His company, DLC, offers a user-friendly platform that provides job opportunities for workers with necessary facilities. Additionally, features like skilling, banking & govt benefits facilities, credibility building opportunity, transparency, and safety compliance ensure a fair and transparent system for everyone involved.
His vision is to replace the PAN India’s physical Labour Chowk (Hiring wall) with the Digital Labour Chowk and mission is to create an efficient and reliable job platform for the daily wage & domestic workers and empower the growth opportunities by developing a digital labour chowk in line with digital India and the UN's sustainable development goals.
About DLC
Digital Labour Chowk (DLC) is India’s first technology-driven marketplace/virtual Labour Chowk that connects daily wage & domestic construction workers with construction work.
DLC objective is to transform job employment opportunities for daily wage & domestic construction workers and provide them with essential facilities such as health safety, insurance, banking & financial assistance, and credibility-building platforms (like resume creation, profile rating & reviews, etc).
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