Branch, which helps businesses accelerate payments to empower working Americans, announced it has raised over $540 million to fuel its momentum in delivering flexible workforce payments. Addition led the closing of a $48 million Series B funding round with participation from Drive Capital, Crosscut Ventures, Bonfire Ventures, Matchstick Ventures, and HR Tech Investments LLC, a subsidiary of Recruit Holdings Co., Ltd., among other investors. The company has also secured $500 million in purchased assets from funds managed by Neuberger Berman.
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With over 300 percent growth year over year, Branch will use the funding to deliver faster payments and inclusive financial services to W-2 and 1099 workforces through partnerships with employers, gig platforms, staffing companies, and other businesses. Companies that have adopted Branch include global 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.
“Branch’s workforce-led approach to financial services produces faster, more cost-effective payment experiences for both enterprises and their workers,” said Lee Fixel, founder of Addition. “We look forward to supporting Branch as it continues to scale and provide even more personalized, workplace-driven financial products.”
Founded in 2015, Branch offers 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 recently expanded the platform to support contractor payments and reporting, offering a more streamlined, uniform payments experience for businesses and their 1099 workers. Companies can automate processes, reduce payroll costs, support independent contractors with free financial services, and remove logistical burdens and 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.”