Andela, a startup once valued at $1.5 billion, has appointed Carrol Chang as its new Chief Executive Officer. Chang, who previously led Uber’s global driver operations, steps into the role as Andela seeks to rejuvenate its growth trajectory following a challenging period.
Founded by Jeremy Johnson and a group of Africa-based entrepreneurs, Andela initially emerged as a talent accelerator, training junior developers in regions such as Kenya and Nigeria and placing them with U.S. businesses. This model allowed Andela to capture a significant share of the market, achieving revenues of over $20 million. However, competition from other talent platforms and bootcamps led to a shift in strategy.
The onset of the COVID-19 pandemic in early 2020 briefly revived Andela’s fortunes as remote work became widespread. By late 2021, the company had attracted substantial investment, including a $200 million Series E funding round led by SoftBank. At its peak, Andela was valued at $1.5 billion, reflecting its booming business during the pandemic. However, as the world adjusted to new normalcy with workers returning to offices and interest rates climbing, demand for remote contractors diminished, causing Andela’s growth to stall.
Currently, Andela operates as a direct marketplace connecting contractors with corporate clients, moving away from its previous model of running its own training programs. The company now provides software to manage and track performance for contractors, who stay on average 18 months per project. Despite the shift, Andela has faced challenges, including controversies over its contractor model and criticism from workers regarding its take rate—the portion of contract proceeds retained by the company.
Chang’s appointment marks a new chapter for Andela. At Uber, Chang was instrumental in reviving driver recruitment and operations during the pandemic. She successfully increased Uber’s driver and courier ranks by 25% over a year, leveraging a combination of improved product features and targeted marketing strategies. Her experience in scaling operations and enhancing user experience is expected to be pivotal in driving Andela’s next phase of growth.
Chang expressed enthusiasm for her new role, stating that her decision to join Andela was driven by a desire to make a meaningful impact. She sees talent management as a critical area for many companies and believes Andela’s technology can significantly transform this space. Under her leadership, Andela plans to leverage generative AI to improve its placement processes and address specific skill gaps in emerging technologies like machine learning.
Andela continues to work with major clients such as Cloudflare, Goldman Sachs, and ViacomCBS, and serves a diverse pool of approximately 150,000 contractors across 135 countries, with a strong presence in Africa and Latin America. Despite past challenges, Johnson remains optimistic about Andela’s future and continues to support the company as a board member.
As Andela embarks on this new phase under Chang’s leadership, the company aims to capitalize on its remaining funding and capitalize on the growing demand for flexible, skilled talent. Chang’s focus will be on strengthening Andela’s position in the market and driving innovation to enhance its service offerings.
Jeremy Johnson, who co-founded Andela and guided it through its formative years, will stay involved in a supportive role on the board but will no longer serve in a full-time executive capacity. He hinted at the possibility of future entrepreneurial ventures, though he acknowledged that his focus might shift in the future.
Overall, the appointment of Carrol Chang is seen as a strategic move to reinvigorate Andela and navigate the evolving landscape of remote work and talent management.
