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Pinwheel Raises $50M Series B At $500M Valuation For Its Income Verification Apis

Pinwheel Raises $50M Series B At $500M Valuation For Its Income Verification Apis

01/18/22, 12:00 PM
Money raised
$50 million
Round Type
series b
Six months after its $20 million Series A, payroll connectivity platform Pinwheel just announced that it has nabbed another $50 million in a round led by new investor GGV Capital.

Company Info

Company
Pinwheel
Additional Info
Despite competition from other players in the somewhat-crowded payroll API space, Pinwheel has demonstrated significant traction in the market and hopes to differentiate itself by building an entire “income layer” of data for its customers that extends beyond just payroll information. Its platform executes over 4.6 million processes per month, a 400x increase from last year, and the company leads its market in customer conversion rates, the company says. Pinwheel is also the only company providing direct deposit switching and payroll data that is classified as a Consumer Reporting Agency (CRA) in compliance with the Fair Credit Reporting Act, meaning that if consumers are adversely affected by Pinwheel’s data, the company would be legally accountable. Just after Pinwheel first came out of stealth mode in June 2020, the company received over 130 inbound messages from big banks like Wells Fargo and Citi, as well as a number of major fintechs, Lin said. While operating as a regulated CRA requires a “herculean amount of work,” it shows that Pinwheel is willing to “stand behind the integrity of [its] data,” Lin said.