Employee data API startup Finch raises $40M

Employee data API startup Finch raises $40M

Posted on

Finch Inc., a startup that builds application programming interfaces that connect to company payroll, human resources and benefits systems, said today it has closed on a $40 million Series B funding round.

Today’s round, which follows a $15 million Series A investment in June, was led by existing investors General Catalyst and Menlo Ventures. QED Investors, Altman Capital and PruVen Capital also participated in the round, which brings Finch’s total amount raised to $58.6 million.

Finch has built an API for employment systems, enabling applications and services such as Gusto, Justworks, Zenefits and more to access corporate employee data more easily. Surprisingly, that information is not very accessible. Traditionally, employee data has been stored in an array of disparate systems.

As a result, most applications require HR administrators to upload data on employee information, enrollment and pay statements manually. Generally, this involves uploading comma-separated values files or using the SSH File Transfer Protocol to transfer said data. However, though SFTP files are secure, it can be an arduous task that requires setting up servers manually. The model also lacks standardization, Finch says.

Finch’s API therefore makes life much easier for HR teams as all they have to do is plug it in and play. According to the startup, its API can benefit financial software systems, support the growing HR and benefits software market, and make life easier for lenders and insurance firms.

The idea is that by having access to a simple source of truth regarding their employees, companies can make better decisions. For instance, an employees’ tenure at their job can be used to help determine their creditworthiness. HR services need to know who is working where, and financial services applications need to understand a company’s current headcount.

In addition to its API, Finch also provides more specific services such as Finch Benefits to help companies create benefits plans and enroll employees more easily. Should an employee change a contribution in a benefits app, Finch will automatically update this information within the appropriate tax category on the paycheck.

The company claims its revenue has increased by more than 12 times since its previous funding round was announced and that it now connects more than 18 million employees through its platform. It has also established key partnerships with leading employee management platforms such as BambooHR and HiBob.

Finch founder and Chief Executive Jeremy Zhang (pictured, right, alongside co-founder and Chief Operations Officer Ansel Parikh) said his company has emerged as the No. 1 API platform in the employment market, with more than 200 integrations.

Finch said it will use the funds from today’s round to expand its platform to cover additional payroll, HR and benefits systems, and also cover new employment data market segments, including benefits administration. It also plans to add new functionality around payroll operations automation. At the same time, it’s looking to add new staff in its engineering, product and customer success teams.

Menlo Ventures Partner Croom Beatty said he’s a big believer in Finch’s vision of creating a new market around programmable employment 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,” he added.

Photo: Finch

Show your support for our mission by joining our Cube Club and Cube Event Community of experts. Join the community that includes Amazon Web Services and Amazon.com CEO Andy Jassy, Dell Technologies founder and CEO Michael Dell, Intel CEO Pat Gelsinger and many more luminaries and experts.

Source link

Leave a Reply

Your email address will not be published. Required fields are marked *