San Diego-based startup Payroll Integrations has secured $20 million in Series A funding to further its mission of providing employers with tools to support their employees’ financial wellness. The company, founded by Doug Sabella and Andrew Hallengren in 2016, aims to automate and streamline the process of connecting payroll and benefits automation for large enterprise organizations.
Key Takeaway
Payroll Integrations has raised $20 million in funding to continue developing tools that support employee financial wellness. By automating and streamlining the integration between payroll and benefit plans, the company aims to meet the increasing demand for financial wellness programs in the corporate world.
Meeting the Increasing Demand for Financial Wellness Programs
As interest rates and inflation continue to rise, companies, such as Amazon and Delta, have recognized the need to prioritize their employees’ financial wellness. Payroll Integrations aims to address this by offering an integration platform-as-a-service (iPaaS) that connects payroll and benefit plans in a more efficient and automated manner.
By integrating with the largest payroll companies in the U.S., Payroll Integrations ingests employee census and payroll data, converting it into a structured and ready-to-use format for employers. This eliminates the need for manual tracking of payroll and census changes, allowing employers to seamlessly connect payroll with retirement, health savings accounts, and other benefit plans.
Filling a Gap in the Benefits Space
Payroll Integrations differentiates itself from other players in the market, such as Merge World and Finch, by providing communication between benefits providers and large enterprise organizations where none existed previously. The company has carved out a niche for itself and has seen great success in this space.
The financial wellness benefits market is already valued at $2 billion and is expected to reach $7 billion globally by 2032. Payroll Integrations, which currently integrates with payroll and 401(k) providers like ADP, Paychex, Empower, and Transamerica, has processed over 1 million employee benefits annually among more than 4,000 companies. The company has tripled its revenue in the past year and expects to continue its growth momentum in the coming years.
New Funding Fuels Product Development and Expansion
Payroll Integrations has recently secured $20 million in Series A funding, led by growth equity firm Arthur Ventures. The funding will be used to further develop the company’s product offerings and operations. Additionally, Payroll Integrations plans to expand its employee workforce by 50% in the next year.
Looking ahead, the company is focusing on developing a software development kit for a more streamlined and automated user experience. It is also building a platform for compliance with third-party administrators, allowing employers to work in accordance with the U.S. Department of Labor and Internal Revenue Service regulations.
