Venture capital firm Matrix Partners has led a fresh funding round for an undisclosed sum in education technology startup Pesto, which runs a career accelerator for software engineering talent in the country, the investor said in a statement.
Sriharsha Majety, Rahul Jaimani and Nandan Reddy, founders of online food delivery startup Swiggy; Dr Ritesh Malik, founder of co-working space provider Innov8; and Ashish Tulsian, founder of restaurant software management firm POSist are among other angel investors that also put in money into the startup, the statement added.
“There’s a severe shortage of tech talent in certain parts of the world (US, Canada, Europe, etc.) and we believe that India has a large number of undiscovered tech talent that can fill this gap,” said Jaiswal in the statement.
The company takes a fixed percentage of the engineer’s salary for the next three years through an income share agreement. Currently, it is starting a batch every month and accepts students on a rolling basis.
“Remote work is an early trend globally driven by a shortage of high-quality local talent, rising cost of living in key technology hubs and widespread adoption of enabling infrastructure such as co-working and collaboration tools," said Rajat Agarwal, vice president at Matrix Partners.
Incorporated in 2006, the investment firm has over the years evolved from a quasi-private-equity investor to a conventional venture capital firm that primarily focuses on tech startups. It recently closed fundraising for its third fund.