• Branch

  Participated · Series A · Aug 2017

  Branch provides instant digital payouts, earned wage access, fee-free banking, paycard alternatives, expense management cards, business debit issuance and a cash-back rewards program aimed at hourly, contract and gig workers. The company acquires users by partnering directly with employers and tech partners and runs programs with customers such as Uber Freight and Walmart’s Spark Delivery. With Uber Freight, Branch can pay drivers roughly two hours after proof of delivery versus the industry norm of 30–60 days. Branch says it has seen over 2,000% growth in the last three years and 700% year-over-year platform growth in 2021, though it declined to reveal hard revenue figures. The firm is expanding its product set (expense controls, custom rewards, wallet features) and plans to deepen penetration in trucking, logistics, last-mile delivery and restaurants while entering construction, hospitality and fitness. Its digital wallet is core to the product and reportedly becomes the primary account for about one in four users, enabling plans to layer on additional financial services to help workers manage cash flow. Branch provides enterprises a faster, cost-effective way to pay employees and independent contractors and offers tools such as digital payouts of tips, wages, and off-cycle payments, earned wage access, fee-free banking, and a paycard alternative. The company recently expanded the platform to support contractor payments and reporting, creating a more streamlined, uniform payments experience for 1099 workers. Branch partners with employers, gig platforms, staffing companies, and other businesses; customers named in the announcement include Kelly, Tagger, Delivery Drivers, Inc., and Rippling. The platform also offers workers a zero-fee bank account, free instant access to earned wages, and personal finance tools to manage cash flow between paychecks. Branch grew over 300% year over year and will use the new funding to deliver faster payments and inclusive financial services to more sectors and workforces. Founded in 2015, Branch aims to expand instant payments and workplace-driven financial products to additional employers and contractor platforms. Branch Messenger is a Minneapolis-based company that offers an app enabling hourly and gig workers to get paid and manage schedules. The company recently filed that it raised $19.47 million in venture capital, though Branch declined to comment on the raise or its intended use. The cash was contributed by seven investors, with Matchstick Ventures' general partner Ryan Broshar saying his firm invested over $1.8 million as a follow-on with existing backers. Named the Business Journal's most promising startup of 2017, Branch previously raised $6.8 million in 2017 to support hiring. The CEO, Atif Siddiqi, was honored by Ernst & Young as an Entrepreneur of the Year last year. Other identified investors in the new round include March Capital Partners, CrossCut Ventures and Techstars Ventures. Branch Messenger provides a mobile-first employee self-service platform (iOS and Android) that lets hourly shift workers manage schedules, swap and pick up shifts, and access workplace-specific messaging channels. The app is free for employees and is being tested at more than 100 Target stores, distribution centers, and call centers. Tens of thousands of hourly shift workers use Branch daily, and users posted more than 2.5 million hours in available shifts on the platform over the last 12 months. Hundreds of enterprises, including Target, McDonald’s, and Walgreens, use Branch to tap an elastic on-demand workforce and extend existing workforce-management systems without switching costs. The company says its technology reduces absenteeism, payroll costs, and management time and can be deployed across an organization in days. Branch was created at Idealab and is a Target + Techstars portfolio company headquartered in Minneapolis with an office in Los Angeles.

No current team members are available.