Pinwheel raises $50M in Series B to help create a ‘fairer financial system’

Pinwheel, a payroll data connectivity platform, raised $50 million in a Series B funding round led by GGV Capital, with continued participation from Coatue, First Round Capital and Upfront Ventures.

Pinwheel raises $50 million

Strategic partners including AMEX Ventures, Indeed, Kraken Ventures and Franklin Templeton have provided new investments.

New York-based Pinwheel says its mission is “to help create a fairer financial system” by providing an API that lets businesses connect payroll accounts to their apps.

“By establishing this layer of revenue connectivity, fintechs, financial institutions and many others can develop new tools or services that provide equitable access to financial services for everyone, including the 67% of Americans considered financially in poor health,” the company said. .

Pinwheel’s data coverage covers nearly 80% of those employed in the United States, making it “the industry’s most comprehensive level of data, traditional forms of income and work through payroll systems for the top 500 employers, to a burgeoning ecosystem of less traditional income and work like gig economy and creator platforms,” he says.

Data is also provided in real time, covering not only scheduled direct deposits for salaried employees, but also hourly punches, which can be used to activate offers such as Earned Wages Access (EWA).

Pinwheel’s clients include Block (formerly Square), Varo, Lendly and Daylight.

The platform executes more than 4.6 million processes per month, a 400x increase from the previous year, according to the vendor. Last year, it increased its annual recurring revenue by 177 times.

Co-founder and CEO Kurtis Lin said the new funding will help the company “evolve rapidly and introduce new solutions that will change finance as we know it.”

“I’m particularly passionate about the vicious cycle of paycheck-to-paycheck life,” Lin says.

“I look forward to a world where people are proactively offered new payment terms for a personal loan if they lose their job, or faster access to their paycheck in times of crisis instead of deal with loan sharks.”

Pinwheel plans to triple its workforce to 180 people, with a focus on engineering roles, continue working on EWA, and expand into new areas such as tax preparation.

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