However, concerns have been raised about Legion's privacy policy, which stores customer data for seven years, and its earned wage access (EWA) program, InstantPay, which charges employees for instant wage transfers. Critics argue that EWA programs can lead to financial instability for low-income workers and should be classified as loans under the U.S. Truth in Lending Act. Despite these concerns, Legion has seen significant growth, with revenue and bookings increasing by 55% and 125% respectively in the past year. The company plans to use the new funding to expand its workforce and launch in Europe.
Key takeaways:
- Sanish Mondkar's startup, Legion, has raised $50 million in funding to help companies manage their workforces, particularly contract and gig workforces, by automating decisions like labor deployment and work schedules.
- Legion's platform uses algorithms trained on customer data and third-party data to generate work schedules, taking into account demand forecasting, labor optimization, and employee preferences.
- Concerns have been raised about Legion's privacy policy, which includes storing customer data, including personally identifiable information, for seven years by default, and its earned wage access (EWA) program, InstantPay, which charges workers for instant wage transfers.
- Despite these concerns and competition, Legion has seen robust growth, with revenue and bookings climbing 55% and 125% respectively in the past year. The company plans to use the recently raised capital to expand its workforce and launch go-to-market efforts in Europe.