Finch raises $40m to bolster connectivity for employment systems

Finch raises $40m to bolster-connectivity-for-employment-systems

Finch, an API-powered employment system, has collected $40m for its Series B funding round, which was co-led by General Catalyst and Menlo Ventures.

Other commitments came from QED, PruVen and Altman Capital.

This fresh equity burst will help Finch accelerate connectivity across the employment data ecosystem by investing into its existing products as well as new ones.  It is also looking to expand its team across the HR, FinTech and benefits teams.

This investment comes just eight months after Finch raised $15m for its Series A funding round. The round was led by Menlo Ventures, with commitments also coming from General Catalyst, Bedrock, Sempervirens and Y Combinator.

Since the Series A, Finch has experienced a 12-times increase in revenue and several months of positive cash flow.

It also established partnerships with employment platforms including, BambooHR, HiBob and others yet to be announced.

Finch’s mission is to build a future where employment is connected and programmable. Its applications are instantly compatible with over 200 employment systems to offer products and services to employers.

The company explained that over 580 million US employment records and $15trn of funds are processed across 20,000 employment data systems, including payroll, HRIS, benefits administration and others. Making things worse, records are mainly passed through manual data entry, SFTP, and emails filled with sensitive information.

Through Finch, companies can connect employment systems across HR, payroll, benefits, including infrastructure in applications across B2B FinTech, benefits, HR and enterprise verticals.

Another employee-focused FinTech company to raise funds was Minu. The Mexican FinTech company raised $30m in funding to support the development of its employee benefits management platform.

The company’s features include training plans and videos for fitness and meditation, virtual personal finance courses, donations to social causes and communication tools.

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