Branch raises $75M to help contract workers get paid faster

Branch raised $75 million in a Series C funding round that closed six months after it announced its last financing round.

In the last three years, the startup says it has seen over 2,000% growth and 700% platform growth.

The Series B and C rounds were won by Lee Fixel's Addition. General Atlantic was involved in the financing along with other backers. The company is not talking about its valuation.

Branch's mission is to give companies a more cost-effective, faster way to pay employees and contractors, which in turn theoretically can help them attract and retain talent and save money compared to using traditional payment methods. Users are acquired by partnering with employers or tech partners.

Since we last talked to the company, it has started working with companies like Walmart and Uber to deliver faster payments to their workers and contractors.

Branch is able to get freight drivers paid two hours after proof of delivery, according to Siddiqi. He said that the status quo in the freight world is 30 to 60 days. There is a big difference.

Siddiqi said that this is a big win for them because a lot of the truckers on their platform are independent owner operators.

Branch's offerings include instant, digital payouts of tips, wages, off-cycle and contractor payments, earned wage access, fee-free banking and a paycard alternative.

Branch is rolling out expense management cards to large enterprise customers. Fleet operators can now give their drivers cards with expense controls to keep track of their frequent business purchases.

This reminds me of Coast, a company that recently raised capital and provides expense management to fleet operators.

Branch has launched a new cash back rewards program and the ability to instantly issue a business debit card. Companies can add custom rewards for their employees and contractors. Branch negotiated rewards with the largest truck stops in the U.S. and incorporated them into its product. A driver can get 50 cents off a gallon by using a Branch card.

The image is called Branch.

Branch will continue its efforts in the trucking, logistics, last-mile delivery and restaurant spaces as well as expand to new industries with its new funding.

He said that the way they thought about it was to build horizontally.

Branch's digital wallet is at the core of its product and, according to Siddiqi, one of out four users switch to Branch as their primary account. Branch wants to build new products to help workers manage their cash flow better.

He said that they become part of their primary financial relationship and handle all their banking so they move over to Branch.

General Atlantic has spent a lot of time thinking about workforce payments and innovations that might happen as the relationship between customers and workers continues to evolve.

The company has been talking to Branch for over a year.

Branch is at the forefront of the shift in how employers are paying workers. If you combine those with additional financial products as benefits to workers, we could see a world where over time, faster payouts and more sophisticated financial products built on payroll and payout, could become table stakes for how corporations are engaging with workers.

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Branch raises $48M from Lee Fixel’s Addition, Indeed to provide accelerated payments to workers