HR and payroll fintech Finch raises another $40 million in funding
Payroll and employee benefits integrator Finch has raised $40 million in a Series B funding round, just eight months after closing a $15 million Series A.
The latest round, which brings Finch’s total funding to nearly $60 million, was led by existing investors General Catalyst and Menlo Ventures along with participation from QED Investors, Altman Capital and PruVen Capital. Finch plans to use the capital to expand its coverage of 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. The company, which was founded in 2020, will also grow its engineering, product and market success teams to support growing demand for the Finch platform.
Since Finch’s Series A round in June, the startup has grown revenue 12x and now has over 1.8 million employees connected through the Finch platform, which gives software and app developers the ability to integrate payroll and employee benefits experiences into their front-end product . through Finch’s API. Recent partnerships include leading hiring platforms such as BambooHR, HiBob and others.
Follow-up round is reward for “outstanding execution”
Jeremy Zhang, CEO of Finch, says: “Finch is the number one API in the workspace, 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 in the area of employment data and payroll/benefits operations, we look forward to continuing to accelerate Finch’s momentum as we revolutionize the global employment ecosystem.”
Alex Tran, CEO of General Catalyst, who will join Finch’s board after the latest fundraising round, adds: “We’ve been a supporter of Finch since its inception 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 supporters 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 innovate at the intersection of two areas we care deeply about.”
Croom Beatty, partner at Menlo Ventures, continues: “Since we were first partnered with Jeremy and Ansel at the seed stage, we have been consistently struck by the team’s vision to create a new market around making employment systems truly programmable while unlocking countless new use cases. on top of these systems, Jeremy and Ansel are world-class founders; their pace of growth as leaders—all while maintaining best-in-class unit economics, recruiting an incredibly strong leadership team, and rapidly rolling out game-changing product features—has been impressive. We’re grateful for the chance to co-lead this funding, and support them for a third round in a row!”
