Business payment acceleration firm Branch announced Tuesday (August 17) it raised more than $540 million in Series B fundraising, money that will be used to help the company build up its flexible workforce payment platform.
Addition led the $48 million Series B funding round and was joined by other investors, including Drive Capital, Crosscut Ventures, Bonfire Ventures, Matchstick Ventures and HR Tech Investments LLC, a subsidiary of Recruit Holdings Co., Ltd.
Branch also secured $500 million in purchased assets from funds managed by Neuberger Berman.
Branch, which has offered a free solution since launching in 2015, plans to use the influx of cash to deliver faster payments and financial services through partnerships with employers, gig platforms, staffing companies and other businesses.
Branch’s toolbox includes digital payouts of tips, wages, and off-cycle payments, earned wage access, fee-free banking and paycard alternatives. The company recently expanded its platform to back contractor payments and reporting, allowing customers to automate processes, reduce payroll costs, support independent contractors with free financial services and remove cash flow concerns.
“Faster payments is a compelling and transformative benefit expected by today’s workforce,” said Branch CEO Atif Siddiqi. “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.”
In April, global payroll competitor Deel announced it had raised $156 million in series C funding and welcomed a new board member.
YC Continuity Fund led the latest round of Deel funding. Ali Rowghani, managing director for YC Continuity Fund, will join the company’s board. Other investors include Andreessen Horowitz and Spark Capital, with participation by Dara Khosrowshahi, Lachy Groom, Jeffrey Katzenberg, Jeff Wilke and Anthony Schiller.
Deel helps businesses bring in and train contractors anywhere in the world and can pay them in more than 120 currencies.