Minneapolis-based Branch is flush with cash. The company, which offers businesses a platform to accelerate payments to employees or flexible workers, just secured $48 million in its Series B round of financing.
Siddiqi said that the company has now raised $58 million in financing to date. At the same time, the company has tapped a new $500 million line of credit. Siddiqi said that can be tapped when there is a delay in payments to workers; Branch will pay the employees and get reimbursed by the business.
Branch’s Series B round appears to be the largest round of equity financing raised by a Minnesota company so far in 2021. Bloomington-based Bright Health Group Inc. and Brooklyn Park-based CVRx Inc., both previously money magnets for raising private financing, have now gone public.
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The company’s recent growth has been robust.
“We had about 300 percent revenue growth, just in terms of the amount of customers we’re working with it was about 700 percent growth. As we expand into new market segments, most recently into facilitating contractor payments, we’re really excited about the growth there and the opportunity as more people turn to contract work or are looking to set up their own independent business operation,” said Siddiqi.
Branch started handling contractor payments earlier this year.
Branch originally began in an incubator in Pasadena, Calif. The company relocated to Minneapolis after participating in Target’s Techstars program.
“We are hiring,” said Siddiqi.
The company currently has 95 employees but will need more as it expands.
In 2020, Siddiqi was a guest on the By All Means podcast.
Source: Bolly Inside
