Startup company Transfr announced recently a third round of VC funding in its efforts to grow the VR Training company.
Virtual Reality has long been viewed as a curiosity for gamers but Transfr is one of several companies seeking to use the tech for practical purposes.
Corporations have always struggled to provide adequate hands-on training for workers involved in manufacturing and repair.
Centralized training centers are needed with simulations and many companies forego this in favor of job shadowing which often provides incomplete training.
VR Training offers to turn that model on its head by allowing companies to set up scenarios that allow users to virtually get their hands involved.
Transfr’s hands-on simulation training focuses on helping trainees gain real-world experience through these simulations to qualify for well-paying jobs.
Rajakumar started the company after selling his first start-up, LearnBop, a math tutoring company, was acquired in 2014.
The market opportunity is huge with Transfr estimating that only 40% of the workforce has adequate training for complex middle-level workers.
PwC believes that VR Training is 52% more cost-effective than normal classroom training because the classrooms can be set up anywhere.
And Deloitte estimates that 75% of companies will use VR Training in some way by 2025.
Rajakumar says that Transfr has already conducted more than 400,000 virtual training sessions since the company began business.
The C-Round funding of $40M will take the company’s total VC intake to $90M.
ABS Capital and JPMorgan Chase led the round of investment which will be used to expand the team at Transfr.