Third Bracket, Indian next-gen hiring platform, has raised 50 million rupee (US$600,000) in seed funding. The investment, announced on May 14, 2025, comes from a group of high-net-worth individuals.

The funds will be used to enhance the platform’s AI hiring capabilities, scale operations, and meet growing demand from enterprises.

The company aims to improve recruitment efficiency and reduce bias in hiring processes.

Founded in 2023 by Chhandan Chakraborty and Nihar Bose, Third Bracket targets inefficiencies in traditional hiring methods.

🔗 Source: Third Bracket

🧠 Food for thought

1️⃣ AI recruitment tools enter a maturing market amid increasing investment

Third Bracket’s funding represents part of a larger AI investment surge in recruitment technology, with AI startups capturing 31% of global venture capital in 2024 totaling approximately $314 billion 1.

The company enters the market during a period when recruitment technology has undergone several evolution phases, from newspaper ads to job boards in the 1990s, job aggregators in the 2000s, social media recruitment in the 2010s, and now AI-powered solutions 2.

This investment trend reflects market confidence in AI recruitment solutions, with industry data showing AI tools reducing time-to-hire by up to 40% when properly implemented 3.

The funding amount (approximately USD $600K-700K) positions Third Bracket in the early-stage category of AI recruitment startups, significantly smaller than the blockbuster rounds we’ve seen for established AI companies like OpenAI ($6.6B) and xAI ($6B) 4.

2️⃣ AI-powered hiring faces both opportunities and challenges in bias reduction

Third Bracket’s focus on “bias-free hiring” addresses a significant industry challenge, but one with a complex history of both progress and setbacks.

Historical examples like Amazon’s discontinued AI recruitment tool demonstrate the risks of implementing AI without proper safeguards. Their system penalized resumes containing the word “women’s” after being trained on predominantly male resumes 5.

Successful bias-reduction approaches from companies like Blendoor have shown that anonymizing candidate data and focusing on skills can increase diversity in hiring outcomes 5.

The emphasis on “intelligent, inclusive and fast hiring” aligns with projected 2025 recruitment trends, where 67% of hiring professionals identify AI implementation as a top priority while simultaneously expressing concerns about maintaining ethical standards and human oversight 6.