Category: Branch

Branch raises $48M from Lee Fixel’s Addition, Indeed to provide accelerated payments to workers



Branch, which has built a flexible workforce payments platform, announced today it has raised $48 million in Series B funding and closed on a $500 million credit facility.

Lee Fixel’s Addition –– which has also backed the likes of Flipkart, Stripe and Coinbase – led the equity financing while the credit facility was secured in the form of purchased assets from funds managed by Neuberger Berman.

Drive Capital, Crosscut Ventures, Bonfire Ventures, Matchstick Ventures, and HR Tech Investments LLC, a subsidiary of Recruit Holdings Co., Ltd. (an affiliate of job search site Indeed) also participated in the equity funding, among other investors. With the latest investment, Minneapolis-based Branch has brought in a total of $58 million in equity funding since its 2015 inception.

The raise marks Branch’s first since 2017.

Branch CEO and founder Atif Siddiqi declined to reveal at which valuation the company’s current round was raised but did note that it saw 300% revenue growth year over year in 2020, and a 700% increase in the number of enterprises using its platform.

Branch was founded to give companies a more cost-effective, faster way to pay employees and  contractors, which in turn theoretically can maybe help them attract and retain talent and save money compared to using traditional payment methods. 

When Siddiqi first started the company, Branch was focused on a use case of helping workers pick up additional hours at companies they already worked at to grow their (Read more...)

Branch raises $50M to offer bundled auto & home insurance via an API



Branch Insurance, a startup offering bundled home and auto insurance, has raised $50 million in a Series B funding round led by Anthemis Group.

Acrew, Cherry Creek Holdings and existing backers Greycroft, HSCM Bermuda, American Family Ventures, SignalFire, SCOR P&C Ventures, Foundation Capital and Tower IV also participated in the round. With this latest financing, Columbus, Ohio-based Branch has raised $82.5 million in total funding since its 2017 inception.

With so many players in the insurtech space, it can get tough distinguishing the various offerings. Branch claims that it is unique in that it is able to provide customers with “an instant insurance offer” for bundled home and auto insurance “within seconds” using just a few pieces of information.

Co-founder and CEO Steve Lekas began his career at Allstate, where he went on to hold roles in underwriting, technology and product management. He then went on to build Esurance’s first online home insurance business.

But in the back of his mind, Lekas yearned to figure out a way to make insurance more accessible for more people. And so he teamed up with Joe Emison, and Branch was born.

“The industry is structurally flawed and it harms consumers. Complicated policies, rising costs and marketing warfare all contribute to a vicious cycle that results in overpriced insurance,” said Lekas. “We are a full-stack insurance company transforming the way people think about their home and car insurance.”

Branch, he claims, is the only insurance company that he is aware of that can (Read more...)