Finch, a San Francisco-based payroll and employee benefits integrator, has raised $40 million as a part of its Series B round co-led by General Catalyst and Menlo Ventures, with participation from QED Investors, Altman Capital and PruVen Capital, bringing its total funding to nearly $60 million.
The startup will utilize the fresh capital to extend coverage to more payroll, HR and benefits systems; expand into new employment data verticals such as benefits administration; and add new functionality such as automating payroll operations.
Co-founded in 2020 by Jeremy Zhang and Ansel Parikh, Finch aims to democratise access to the infrastructure that underpins the employment sector and help create products for employers and employees. Through a single application programming interface (API) integration, the platform offers access to customers’ census, payroll and benefits data “across hundreds of (human resources information system) HRIS and payroll systems”.
Speaking about the capital raised, Co-founder & CEO of Finch, Jeremy Zhang, said:
Finch is the number-one API in the employment space, now with more than 200 integrations. Backed by investors we trust, who are fully aligned with our mission to bring deeper connectivity and broader coverage to the realm of employment data and payroll/benefit operations, we look forward to continuing to accelerate Finch’s momentum as we revolutionise the global employment ecosystem.
Finch team comes from a diverse set of backgrounds. The company is passionate about its crafts, the hobbies, they keep, and the relationships that build. It’s partnership includes leading employment platforms like BambooHR, HiBob and others.
Alex Tran, Managing Director at General Catalyst, who will join Finch’s board of directors following the latest fundraising round, added:
We have been supporters of Finch since its formation when we led the seed round, and we’re very excited to double down on our partnership given the team’s outstanding execution. As early backers of Stripe and Gusto, we have come to appreciate the importance of fintech infrastructure as well as the evolving nature and use cases around employment data. We’re excited to see Finch innovating at the intersection of two areas we care a lot about.
With this investment round, Finch also plans to hire across all areas of its business in 2023, aiming to grow its workforce from 57 employees to north of 80.
Commenting on the investment, Partner, Menlo Ventures, Croom Beatty, commented:
Since first partnering with Jeremy and Ansel at the seed stage, we have been consistently struck by the team’s vision in creating a new market around making employment systems truly programmable while unlocking countless new use cases built on top of these systems. Jeremy and Ansel are world-class founders; their rate of growth as leaders – all while maintaining best-in-class unit economics, recruiting an incredibly strong executive team, and quickly rolling out game changing product features – has been impressive. We are grateful to have the chance to co-lead this financing, and back them for a third consecutive round
In June 2022, Finch had raised $15 million in its Series A funding round led by Menlo Ventures. General Catalyst, Bedrock, Sempervirens and Y Combinator, also participated in this round. Since then, the firm claims a 12x increase in revenue, several months of positive cashflow, a headcount of more than 60 employees globally and several new partnerships forged.