Humanly’s Bold Expansion Reshapes the Hiring Technology Landscape
In a significant development for the recruiting technology industry, Seattle-based startup Humanly has announced the acquisition of three companies—Sprockets, Qualifi, and HourWork—in a strategic move to create an all-encompassing hiring platform. Founded in 2018, Humanly has been making waves with its automation software designed to streamline the recruitment process for companies with high-volume hiring needs. CEO Prem Kumar, who spent a decade at Microsoft before co-founding Humanly with Andrew Gardner and Bryan Leptich, envisions a future where every aspect of hiring—from sourcing and screening to interviewing and post-hire engagement—exists within a unified system. This expansion comes at a pivotal moment in the HR tech sector, following Workday’s recent $1 billion acquisition of Paradox, one of Humanly’s main competitors, highlighting the increasing consolidation and investment in recruitment technology.
Each acquisition brings unique capabilities to enhance Humanly’s already robust platform. Sprockets contributes sourcing and frontline manager tools that strengthen talent pipelines, helping companies build and maintain pools of qualified candidates. Qualifi adds automated phone and voice screening capabilities, complementing Humanly’s existing chat, SMS, and video systems to create a comprehensive candidate interaction toolkit. Perhaps most strategically, HourWork extends Humanly’s reach beyond the hiring process into post-hire engagement—a critical area for companies struggling with retention, particularly for hourly workers. This three-pronged expansion allows Humanly to support employers throughout the entire employee lifecycle, addressing pain points that have traditionally required multiple disconnected solutions.
The timing of Humanly’s expansion is particularly noteworthy as the recruitment landscape faces unprecedented challenges. Kumar points to a significant issue created by generative AI: candidates can now mass-apply to job openings with customized applications, overwhelming employers with volume while making it increasingly difficult to differentiate between applicants. This flood of applications has exacerbated an already broken system where typically only a small percentage of candidates receive any response. Humanly’s solution leverages AI to help employers manage this volume, with tools like their AI Video Interviewer that automatically conducts and transcribes interviews. “It’s helping you get to 100% of candidates, not 5%,” Kumar explains, emphasizing that the goal isn’t to replace human recruiters but to expand their reach and fill critical gaps in the hiring process.
The company’s approach to AI in hiring reflects a pragmatic view of the technology’s role. While acknowledging that some candidates express discomfort interacting with AI systems during their job search, Kumar offers a sobering perspective: “What we’re finding is it’s not the difference between talking to AI and a human—it’s a difference between talking to AI or being ignored.” This insight cuts to the heart of the current hiring reality, where many applicants receive no feedback whatsoever. Humanly’s platform aims to change this by using the millions of transcripts collected from AI chat and video interactions to train models that more accurately score candidates and assist recruiters in making informed decisions. With 600 million candidate profiles and approximately 250,000 monthly candidate interviews, the company has amassed significant data to refine its algorithms and improve hiring outcomes.
The business trajectory of Humanly reflects the high-growth nature of the HR technology sector. Despite being intentionally not profitable as it invests in infrastructure and expansion, the company has tripled its revenue in 2025 and now boasts over 100 customers, including major enterprises like Microsoft, Rogers Communications, MGM, and Dish Network. Following the acquisitions, Humanly’s workforce has grown to just over 50 employees, with select staff from the acquired companies joining the team. The startup’s financial foundation appears solid, having raised $7 million in May 2025, bringing its total funding to $24 million since graduating from Y Combinator in 2019. Kumar has indicated plans to seek additional investment in 2026, suggesting confidence in the company’s growth prospects and market position.
As the recruitment technology landscape continues to evolve, Humanly’s aggressive expansion strategy positions it as a significant player in reshaping how companies approach hiring. By combining cutting-edge AI capabilities with a holistic view of the employment journey, Humanly addresses fundamental inefficiencies in traditional recruiting methods. The company’s vision extends beyond simply automating tasks—it aims to create more equitable hiring processes where every candidate receives consideration and feedback. While the terms of the three acquisitions remain undisclosed, the move clearly signals Humanly’s ambition to become a comprehensive solution in an increasingly competitive market. As employers grapple with changing workforce dynamics and technological disruption, platforms like Humanly that bridge the gap between automation and human connection may well define the future of recruitment.
