Branch, a workforce payments platform, had announced a Series C round totaling $75 million.
As covered, the investment round, led by Addition, includes contributions from global growth equity investor General Atlantic along with existing investors Drive Capital, Crosscut Ventures, and Indeed, among others.
Branch aims to support faster payments and “provides inclusive financial services to W-2 and 1099 workforces for companies such as Uber Freight, Kelly, Walmart Spark, Flashtract, and Tippy.”
Recognized on the Deloitte Technology Fast 500™ as one of the “fastest-growing” companies in North America, Branch’s workforce payments platform revenue “grew by more than 700% over the last year.”
The firm will use this capital infusion “to further momentum in Trucking, Logistics, Last-Mile Delivery, and Restaurants and expand to new verticals such as Construction, Hospitality, and Fitness.”
The company plans “to double headcount, with all positions available to work remotely anywhere in the US.”
Branch CEO Atif Siddiqi stated:
“Faster payments have played a pivotal role in our mission of helping working Americans grow financially, delivering tremendous value to so many people and industries. With this new round, we have an incredible opportunity not only to accelerate payments in new sectors, but also provide additional cash flow benefits and tools to our customers.”
Building new tools for independent contractors growing their businesses, Branch is “rolling out expense management cards with large enterprise customers including trucking and logistics companies.”
Fleet operators can now “provide cards to their drivers along with granular level expense controls to track spend on frequent business purchases such as fuel.”
Branch has also launched the ability to “instantly issue a business debit card and a new cash back rewards program.”
Companies can “add custom rewards for their employees and contractors to the program as well.”
Branch’s offerings reportedly “include instant, digital payouts of tips, wages, off-cycle, and contractor payments; free earned wage access; zero-fee banking; and an accessible paycard alternative.”
By partnering with Branch, companies can “automate processes, reduce payroll costs, support workers with free financial services, and significantly decrease logistical burdens and cash flow concerns.”
Crowdfund Insider recently received additional insights from Branch CEO Atif Siddiqi.
His comments are shared below.
Crowdfund Insider: What are Branch growth objectives and key priorities for 2022?
Atif Siddiqi: We’ve seen even great momentum in the 1099 space, particularly in trucking/logistics and last-mile delivery, with companies such as Uber Freight and Walmart Spark. We’re looking to continue growth in the sectors we’re currently operating in like trucking, logistics, last-mile delivery, and restaurants and expand to new verticals such as hospitality, fitness, and construction, which can experience even more complicated, long payment processes.
Along with expanding faster payments to more sectors, we are launching new tools to support workers and help them grow financially, such as expense management cards, cash back rewards, and the ability to instantly issue a business debit card on site.
Crowdfund Insider: How do you see this industry segment growing in the coming years?
Atif Siddiqi: In such a tight labor market, faster payments have become a compelling benefit that workers are seeking out. Companies are increasingly adding accelerated payments as a result and are seeing the business benefits of doing so, such as reducing costs and attracting and retaining talent.
There are still a number of sectors that rely on slower, disparate payment methods such as paper checks, cash, and paycards, all of which delay funds to workers. We look forward to expanding into those industries and supporting them with faster, more flexible payment methods and financial services.
Crowdfund Insider: What are you doing to educate and help your clients better understand the value of faster payments?
Atif Siddiqi: Faster payments are increasingly becoming table stakes for everyone, whether it’s making purchases faster, paying workers faster, or businesses receiving their funds faster. But building your own payments solution can be costly, time-consuming, and difficult to maintain. We’re helping companies realize that they don’t need to be payments experts or build their own solution, but can easily partner with a company like Branch to work with them and their needs.
We’re constantly evolving and expanding our offerings so that our customers and partners aren’t just equipped with tools to accelerate payments, but have a dynamic solution that can also help workers grow, whether that’s cash flow and expense management tools, cash back rewards, or eliminating fees.