Pinwheel, whose platform allows consumers to connect to their payroll account via any app, has secured $20 million in a Series A funding round led by Coatue.
The news comes at a time when Pinwheel has seen its revenue grow 11x over the past quarter and has increased coverage to over 100 million Americans.
This funding round also had participation from some notable angel investors including Raj Date, the first Deputy Director of the Consumer Financial Protection Bureau, and Tony Xu of DoorDash.
Pinwheel, which was introduced in September 2020, builds pipes that connect systems to banks, lenders and other providers. The pipes also provide API access to payroll systems. Banking consumers can also use the company for direct deposit switching and move paychecks to a new bank account. The company also works with lenders to retrieve account data such as income and employment to improve the verification process.
Pinwheel integrates with “with every major payroll provider, government portal, and gig economy platform,” according to the news release. The company’s customers include Square Cash App and Current.
Pinwheel currently has about 40 employees, but with this fresh funding it plans to hire more, Kurtis Lin, co-founder & CEO of Pinwheel, told FinLedger in an email interview. Although, Lin wouldn’t specify how many more.
Lin said the company is experiencing a rise in demand from lenders, especially with the increase in mortgage refinancing. The company has also seen a surge in demand from consumer fintechs.
“Our focus is to ensure that we deliver as much value and delight as we can to both existing customers as well as to new ones. That means continuing to invest in growing our best-in-class coverage of payroll platforms, improving our market-leading conversion rates, and continuing to build our world-class team. This new funding will allow us to do exactly that,” Lin said in the interview.
“We believe in a future where FICO and Equifax aren’t the only tools businesses use to make decisions for customers that can impact futures and livelihoods,” the press release stated.