The funding will help Pinwheel enhance and expand its offering. Here are the top-line bullets you need to know.
Pinwheel, a payroll API provider, has raised $50M in a Series B. The round drew participation from GGV Capital, American Express Ventures, Coatue Management, and Franklin Templeton, among others.
HOW’S THE COMPANY PERFORMING?
- New York-based Pinwheel helps fintech companies and financial institutions manage direct deposits, verify income and employment information, and streamline other payroll processes.
- Pinwheel’s platform executes over 4.6M processes each month.
- Currently, Pinwheel covers over 100M employed Americans (80% of US employees).
- The company’s annual recurring revenue (ARR) increased 177x in 2021.
- The startup’s clients include fintech companies, financial institutions, and neobanks like Block, Varo, Daylight, and Lendly.
- Pinwheel is currently supported by a team of 70 employees and operates in the US.
WHY DOES THE MARKET MATTER?
- The global HR payroll software market is expected to reach a value of $5.9B by 2025, growing at a CAGR of 4.9%, according to Apex Market Research.
- The on-demand economy, the increasing popularity of flexible payment methods, and the rise of distributed workforces amid Covid-19 have contributed to market growth.
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