What to know about the latest raise from Branch:
- Branch, a Minneapolis-based tech company that assists gig and hourly workers manage schedules and payments, has secured a $48 million Series B funding round and closed on a $500 million credit facility
- Lee Fixel-helmed Addition led the round — the credit facility was secured in purchase assets from funds managed by Neuberger Berman
- Crosscut Ventures, Drive Capital, Bonfire Ventures, Matchstick Ventures, and HR Tech Investments LLC also participated in the round
- The Series B round bring Branch’s total funding to $58 million since 2015
- TechCrunch says Atif Siddiqi, Founder and CEO of Branch, declined to comment on the company’s current valuation, but did say that the company, “…saw 300% revenue growth year over year in 2020, and a 700% increase in the number of enterprises using its platform.”
- Branch says the funds will be used to, “…deliver faster payments and inclusive financial services to W-2 and 1099 workforces through partnerships with employers, gig platforms, staffing companies, and other businesses.”
The Quote: Atif Siddiqi, CEO of Branch
“Faster payments is a compelling and transformative benefit expected by today’s workforce. We’ve seen how it can significantly improve cash flow for both companies and workers, so we’re excited to deliver instant payments and other engaging tools to more sectors and workforces, from other workers living paycheck to paycheck to independent contractors growing their own businesses.”
For more information about Branch and the raise, read the release below.
MINNEAPOLIS, MN — Branch, which helps businesses accelerate payments to empower working Americans, today announced it has raised over $540 million to fuel its momentum in delivering flexible workforce payments. Addition led the closing of a $48 million Series B funding round with participation from Drive Capital, Crosscut Ventures, Bonfire Ventures, Matchstick Ventures, and HR Tech Investments LLC, a subsidiary of Recruit Holdings Co., Ltd., among other investors. The company has also secured $500 million in purchased assets from funds managed by Neuberger Berman.
With over 300 percent growth year over year, Branch will use the funding to deliver faster payments and inclusive financial services to W-2 and 1099 workforces through partnerships with employers, gig platforms, staffing companies, and other businesses. Companies that have adopted Branch include global workforce solutions provider Kelly, influencer marketing platform Tagger, Delivery Drivers, Inc. (DDI), an independent contractor management solution specializing in last-mile delivery, and HR and IT management platform Rippling.
“Branch’s workforce-led approach to financial services produces faster, more cost-effective payment experiences for both enterprises and their workers,” said Lee Fixel, founder of Addition. “We look forward to supporting Branch as it continues to scale and provide even more personalized, workplace-driven financial products.”
Founded in 2015, Branch offers enterprises a faster, free solution to deliver on-demand payments and empower their employees and contractors with tools including digital payouts of tips, wages, and off-cycle payments, earned wage access, fee-free banking, and paycard alternative. Branch recently expanded the platform to support contractor payments and reporting, offering a more streamlined, uniform payments experience for businesses and their 1099 workers. Companies can automate processes, reduce payroll costs, support independent contractors with free financial services, and remove logistical burdens and cash flow concerns.
“Faster payments is a compelling and transformative benefit expected by today’s workforce,” said Branch CEO Atif Siddiqi. “We’ve seen how it can significantly improve cash flow for both companies and workers, so we’re excited to deliver instant payments and other engaging tools to more sectors and workforces, from other workers living paycheck to paycheck to independent contractors growing their own businesses.”
Branch helps businesses accelerate payments to empower working Americans. Businesses turn to Branch for a more cost-effective, faster way to pay employees and independent contractors and reduce the costs of paper checks and paycards. Workers that sign up with Branch can receive a zero-fee bank account, instant access to earned wages, and personal finance tools to help them manage their cash flow between paychecks. Branch partners with some of the nation’s leading payroll and workforce technologies to support companies in retail, restaurant, logistics, manufacturing, and healthcare. To learn more about Branch, visit https://www.branchapp.com and follow us on Twitter, Facebook, and LinkedIn.