Branch, which helps businesses “accelerate” payments to “empower” working Americans, revealed on August 17, 2021 that it has secured more than $540 million in capital to “fuel its momentum in delivering flexible workforce payments.”
Addition has reportedly led the closing of a $48 million Series B round along with contributions from Drive Capital, Crosscut Ventures, Bonfire Ventures, Matchstick Ventures, and HR Tech Investments LLC, which operates as a subsidiary of Recruit Holdings Co., Ltd. (among several other investors).
The company has also acquired $500 million “in purchased assets from funds managed by Neuberger Berman.”
With more than 300% growth YoY, Branch will be using the proceeds to work on providing quicker payments and inclusive financial services to W-2 and 1099 workforces via strategic partnerships with employers, gig platforms, staffing companies, and other businesses.
As mentioned in a release shared with CI, firms that have adopted Branch include 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.
Lee Fixel, founder of Addition, stated:
“Branch’s workforce-led approach to financial services produces faster, more cost-effective payment experiences for both enterprises and their workers. We look forward to supporting Branch as it continues to scale and provide even more personalized, workplace-driven financial products.”
Established in 2015, Branch provides 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 has also expanded the platform to “support contractor payments and reporting, offering a more streamlined, uniform payments experience for businesses and their 1099 workers.” Companies may automate processes, lower overall payroll costs, and also “support independent contractors with free financial services, and remove logistical burdens and cash flow concerns.”
Branch CEO Atif Siddiqi remarked:
“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.”
As previously reported, Branch assists companies or 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, free 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.”
