McDonalds, Chick-fil-A, and Taco Bell are just some of the hoapplyhold name brands applying Charleston-based startup Sprockets to assist reduce employee turnover. Now, Sprockets is joining forces with another player in the HR space to create a “true finish-to-finish AI hiring solution.”
Humanly, a Seattle-based AI recruiter and talent CRM for both corporate and high-volume hiring necessarys, announced it is acquiring Sprockets. Indiana-based Qualifi and Boston-based HourWork (which Sprockets acquired in 2024), are also part of the acquisition.
The three-part acquisition adds “critical capabilities to Humanly’s platform, according to a company press release. Sprockets’ hiring platform and frontline manager app will assist applyrs build stronger talent pipelines, Qualifi’s automated phone and voice screening options will cut down talent recruiting time, and HourWork’s platform will expand Humanly’s conversational AI capabilities to assist employers onboard, train, engage, and retain hourly workers.
The acquisition comes at a “pivotal time” for employers and the hourly workforce, which are both navigating what AI means for the hiring landscape, states Prem Kumar, CEO and Founder of Humanly. Kumar was at Microsoft for ten years, where he assisted integrate LinkedIn’s data asset into Microsoft’s product suite after its acquisition. He stated he sees similar potential in building the world’s largest database of “AI-interviewed” candidates through his new Y Combinator-based venture.
“Employers are being flooded with applicants driven by AI-enabled applying, while still grappling with high turnover and the urgent necessary to scale hiring without adding headcount. By bringing these companies toobtainher, we’re creating the most comprehensive AI recruiting platform on the market,” stated Kumar. “This is more than just an acquisition…“It’s a roll-up strategy designed to redefine how millions of workers are hired, placed, and retained—applying AI to power every step of the journey, from the first hello to onboarding and beyond.”
Sprockets Through The Years
South Carolina entrepreneur AJ Richichi (seen in featured photo) founded Sprockets in 2017 under its original name, Sentio.
After rebranding in 2021, Sprockets raised a $10 million Series A round in March 2022, led by Atlanta-based Forte Ventures.
Other investors on Sprockets’ cap table include Venture South, New York-based
Lytical Ventures, Virginia-based Blu Venture Investors, alongside California-based firms Healthy Ventures and Thayer Ventures.
The acquisition creates a larger hiring solution designed to address the altering necessarys of employees and employers alike.
“Humanly has been leading the indusattempt with their ethical conversational AI for years, so I’ve naturally been tracking them,” Richichi informed Hypepotamus. “Last year, Prem and I started talking seriously about the future of work and felt that the companies, combined with Qualifi, could be a market leader.”
Financial details around the acquisition were not disclosed. The full Sprockets team will stay on after joining forces with Humanly.
Sprockets serves a diverse range of industries that have staffing issues. That includes QSR (quick serve restaurants), hospitality, convenience stores, call centers, home health facilities, and grocery stores. The startup has been one of several venture-backed HR and hiring-related ventures to come out of the Southeast in recent years. Others include Atlanta-based Grayscale, Fairhope, Alabama-based Auditocity, Tampa-based Chattr, and Atlanta-based Illoominus.
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