NEW YORK, January 18, 2022 /PRNewswire/ — Pinwheel, today announced that it has raised $50 million in a Series B round led by GGV Capital, with continued participation from Coatue, First Round Capital and Upfront Ventures, as well as new investments from strategic partners including AMEX Ventures, Indeed, Kraken Ventures, Franklin Templeton, and more.
Pinwheel’s mission is to help create a fairer financial system by providing an API that allows businesses to easily and securely connect payroll accounts to their apps with consumer authorization. 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 all, including 67% Americans who are considered financially unsound.
While income and employment status are the primary determining factors in all financial decisions, this information is not readily available, making it impossible to tailor financial service offerings to a person’s specific financial situation. . Pinwheel’s market-leading data coverage covers nearly 80% of people employed in United States. It’s the industry’s most comprehensive level of data, from traditional forms of income and work through payroll systems for the Top 500 Employers, to a burgeoning ecosystem of less traditional income and work such as platforms for the economy of concerts and creators. This breadth of data solves the missing middle of income, ushering in the next generation of equality-focused fintech innovations.
For example, Pinwheel provides real-time data on a person’s income and uniquely covers not only scheduled direct deposits for salaried employees, but also hourly clockings, most accurately presenting any type of income. This data can be used to enable offers such as Earned Wage Access (EWA), through which a person can receive their money as soon as they have earned it, bypassing the waiting period for a paycheck . When encountering an immediate financial need, a person now has an option that can actually maintain or improve their credit by avoiding high interest payday loans or credit cards. Likewise, Pinwheel’s technology can also be applied to other scenarios such as loan appraisals, etc. This establishes a more symbiotic relationship between consumers and financial services. Pinwheel’s industry-favorite flagship products, such as direct deposit switching, income and employment data, and paycheck-linked lending, power innovations like these.
With Pinwheel, through the development of unique offerings that will improve the overall financial health of people in the United States, fintechs and financial institutions are able to acquire new customers more successfully and retain existing customers, while providing consumers with enhanced experiences that disrupt the financial status quo. Pinwheel works closely with its clients including Block (formerly Square), Varo, Lendly and Daylight to pave the way for a fairer financial system.
“With this latest cycle so closely following our Series A, we are poised to scale rapidly and introduce new solutions that will change finance as we know it,” said Kurtis Lin, co-founder and CEO of Pinwheel. “I’m particularly passionate about the vicious cycle of paycheck-to-paycheck life that plagues almost 80% of people in United States, developing products that will propel EWA and dynamic lending opportunities. 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 doing in the face of loan sharks.”
“Pinwheel’s API unlocks the power of the revenue layer, driving the next wave of innovation in the fintech ecosystem,” said Tiffany’s Luck of GGV Capital. “Pinwheel has the ability to impact every American who receives a paycheck. Such an opportunity, coupled with the company’s mission to build a fairer financial system, uniquely positions Pinwheel to reshape financial life. of so many people in a positive way. We are proud to partner with them on this journey.”
With its best team consisting of many fintech industry veterans, Pinwheel has built an enterprise-ready platform that runs securely on 4.6M processes per month, a 400x increase over the previous year. Pinwheel is the market leader in conversion rates. Last year, Pinwheel increased its annual recurring revenue by 177 times.
With this funding, Pinwheel plans to triple its workforce to 180 people, with a particular focus on engineering roles, continue working on EWA, and expand into new areas such as tax preparation. Additionally, the company will continue its commitment to setting the industry standard for consumer data security. Last year, Pinwheel received its SOC2 Type 2 compliance. Not only is Pinwheel the only payroll data provider to have a CISO, but it is also the only company that handles both direct deposit change and providing payroll data to be a Fair Credit Reporting Act (FCRA) compliant Consumer Reporting Agency (CRA).
Reel is the market-leading payroll data connectivity platform. Fintechs and financial institutions trust Pinwheel to access data and controls from traditional and non-traditional payroll platforms to update direct deposits, streamline income and employment verification, improve underwriting, accessing earned salaries and creating innovative new products. With consumer permission, Pinwheel connects to the majority of these providers, spanning over 1,400 platforms and nearly 80% of anyone receiving a paycheck in the United States, to enable market-leading fintechs , like Block (formerly Square), to easily access and update payroll data for more than 100 million US-based employees. Pinwheel is the only provider that manages both the change of direct deposit and the provision of income and employment data to comply with the Fair Credit Reporting Act (FCRA). To learn more, visit www.pinwheelapi.com.
About GGV Capital
GGV Capital is a global venture capital firm that invests in local founders, managing $9.2 billion with investments in United States, Canada, China, South East Asia, India, Latin America, and Israel offices in Silicon Valley, San Francisco, Singapore, Shanghai, and beijing. As a multi-stage, industry-focused company, GGV Capital invests in growth-stage companies in three sectors: Social/Internet, Enterprise Tech and Smart Tech. Over the past two decades, the company has backed over 400 companies, including Affirm, Airbnb, Alibaba, Big Commerce, Boss Zhipin, Grab, HashiCorp, NIU, Opendoor Technologies, Peloton, Poshmark, Slack, Square, StockX, Udaan, Wish, Xpeng, Zendesk, etc. More information at www.ggvc.com and @ggvcapital.
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