Finch, which aims to lead a charge into the improved integration of HR systems, raised $40 million in Series B funding led by General Catalyst and Menlo Ventures. The news comes just months after the company announced a $15 million Series A round, in June 2022. The latest round brings its total funding to $58.6 million.
With the funding, Finch said it plans to extend its coverage to more payroll, HR and benefits systems. In addition, the company hopes to expand into new employment data verticals, such as benefits administration, and new functionality, such as automating payroll operations. The goal is to further support the company’s vision of making the employment space “connected and programmable.”
In a blog post, CEO Jeremy Zhang said the “employment ecosystem” is hampered by a lack of data accessibility. For example, nearly 600 million U.S. employment records and $15 trillion of funds are processed across more than 20,000 data systems. On top of that, he said, “the ecosystem lacks necessary connectivity with records mainly passed via manual data entry, SFTP and emails filled with sensitive information.”
Founded in 2019, Finch provides companies with access to organization-wide directory, payroll and benefits data. Recently, the company announced product updates including support for the custom fields employers can use to track progress on initiatives. As the company defines them, these are “fields created by employers which do not yet exist in the system.” The company hopes the product will drive a better employer experience through its help with compensation management, learning and development and benefits, among other things.
Since the previous funding round, Finch has taken significant steps toward growth. Most notably, the company added several partnerships with companies such as BambooHR, HiBob and Paylocity. The company also increased its employee headcount.
The company also added ethnicity data to help track workplace metrics and deliver “deeper” insights with the goal of improving organizational diversity.