Continuing a fiery month of funding for Austin tech, local oil and gas technology startup RigUp raised a $60 million Series C on Tuesday.
RigUp’s marketplace connects oil and gas contractors with on-demand jobs available in their industry. The company reported that pre-qualified oilfield laborers can land their next job within just a few days of registering on RigUp’s platform.
Its technology adds value to both enterprise buyers and contractors by making the process to hire contingent labor much faster and easier.
“Operators enjoy the simplicity, speed and transparency we provide — contractors enjoy the ease of finding work and getting paid quickly,” said Yong.
In 2018 alone, the company added over 1,500 new contractors to its network and operated more than 500 drilling rigs with RigUp contractors. Internally, the company increased employee headcount from 55 to 149, and has plans to add another 50 more over 2019.
“At a time when the energy industry is facing a shortage of workers in the field, RigUp has become the largest workforce provider to the oil and gas industry,” said Yong. “By utilizing its technology platform, RigUp has helped operators lower their variable contingent labor costs by qualifying and getting contractors to work and paid faster.”
RigUp’s growth to date only scratches the surfaces of what’s to come.
According to the company, within the next five years, about 50 percent of the oil and gas workforce will retire, leaving huge opportunities for the upcoming generation of oilfield operators.
With the influx in the capital, RigUp plans to grow its products and services to offer mobile sourcing, certification tracking, digital invoicing and better ways for contractors to identify new opportunities.
Founders Fund led the round, which included participation from previous investors Quantum Energy Partners, Global Reserve Group and Bedrock Capital. The company has now raised $90 million since its 2014 launch.
