Finch, a San Francisco, CA-based provider of an API for payroll, HRIS and benefits, today announced that it raised $40M in Series B round led by General Catalyst and Menlo Ventures, with participation from QED Investors, Altman Capital, and PruVen Capital. Alex Tran, Managing Director at General Catalyst, will join the board of directors. The round brought the total funding to $58.6M.

The company intends to use the funds to extend coverage to more payroll, HR and benefits systems, expand into new employment data verticals such as benefits administration and new functionality such as automating payroll operations, and grow its engineering, product and success teams to support rising demand for the Finch platform.

Co-founder and CEO Jeremy Zhang claims that the company was cash flow-positive before the funding round, with revenue increasing 12x since Finch’s Series A last June.

Finch was co-founded by Jeremy Zhang and Ansel Parikh in 2020, initially to address the challenges lenders faced around processing Paycheck Protection Program applications. (Zhang previously worked at Amazon’s robotics R&D division, while Parikh was an investor at Kleiner Perkins.) The goal was to help businesses get the funding they needed without having to send payroll journal PDFs to lenders. But once Finch launched, Zhang and Parikh realized that there was much higher demand for connectivity in the HR software space beyond that limited use case.

Led by Jeremy Zhang, Finch makes it possible to access org-wide directory, payroll and benefits data across 200+ payroll, HRIS and benefits systems — all through a single integration. Over 1.8m employees are currently connected through the platform.