The payment solutions provider will use the proceeds from the funding to deliver quicker payments and inclusive financial services to W-2 and 1099 workforces
Branch secures over $548m for accelerating flexible workforce payments. (Credit: mohamed Hassan from Pixabay)
US-based fintech company Branch said that it has raised $548m in funding to accelerate flexible workforce payments through its employer payments platform.
The company completed a Series B funding round of $48m, which was led by venture capital firm Addition.
Also taking part in the financing round were Drive Capital, Bonfire Ventures, Crosscut Ventures, HR Tech Investments, and Matchstick Ventures, among others.
Additionally, Branch secured $500m in the form of purchased assets from funds managed by investment management firm Neuberger Berman.
Established in 2015, the fintech firm is said to provide a faster, free solution to enterprises for delivering payments on demand to employees and independent contractors. This cuts down the costs of paper checks and paycards for enterprises.
Employees and workers who sign up with Branch can get a zero-fee bank account and free instant access to earned wages, and personal finance tools for handling their cash flow between paychecks.
The fintech firm is said to partner with payroll and workforce technologies to support businesses in the retail, logistics, restaurant, healthcare, and manufacturing sectors.
Addition founder Lee Fixel said: “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 personalised, workplace-driven financial products.”
Branch will use the proceeds from the funding for delivering quicker payments and inclusive financial services to W-2 and 1099 workforces via partnerships with employers, staffing firms, gig platforms, and other businesses.
Branch CEO Atif Siddiqi said: “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.”