Branch, a company that helps businesses streamline payments to empower employed Americans, has recently secured more than $540 million to continue its growth in providing flexible worker payments.
Drive Capital, Matchstick Ventures, Bonfire Ventures, Crosscut Ventures, and HR Tech Investments LLC were some of investors that participated in the $48 million Series B investment round led by VC firm Addition. Furthermore, the company has secured $500 million in acquired assets from Neuberger Berman-managed funds.
With growth by over 300% year over year, Branch will use the funds to provide speedier payments and comprehensive financial services to W-2 and 1,099 workers through collaborations with employers, gig platforms, staffing organizations, and other enterprises.
Companies that have employed Branch are Delivery Drivers, Inc. (DDI), global workforce solutions provider Kelly, influencer marketing platform Tagger, and HR and IT management platform Rippling.
Lee Fixel, the founder of Addition, said “Branch's workforce-led approach to financial services results in faster, more cost-effective payment experiences for both businesses and their employees. They are excited to continue to support Branch as it expands and offers even more personalized workplace-driven financial products”.
Atif Siddiqi, CEO of Branch, said “Today's workforce expects faster payments and the company have seen how it can greatly improve cash flow for both firms and workers. They are pleased to bring instant payments and other engaging tools to a wider range of industries and workforces, from hourly workers to independent contractors establishing their businesses”.
Branch, formed in 2015, provides businesses with a faster, free way to provide payments on-demand and empower their employees and contractors with solutions including digital tips, fee-free banking, wage, and off-cycle payments, earned wage access, and a payment card alternative.
Branch has upgraded its platform to include contractor payments and reporting, delivering businesses and their 1,099 workers a more efficient and consistent payment experience.