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Finch - Sacra Company Teardown

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Finch: The universal API for employment systems

Distributed workforces require new solutions for office operations, HR, payment, and more.

Remote Work Infrastructure

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    A deep dive into Finch's product, business model, competitive environment, and market opportunities...
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        As of 2024, Finch was valued at USD 250 million and had received USD 68 million in funding. The company grew its operations with increased revenue 12x between funding rounds and processed ~5 million daily API calls.
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        The company&rsquo;s API system integrates over 200 payroll and HRIS systems. The API facilitates the reading and writing of data, including deductions and contributions, and focuses on data protection with encryption protocols.
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        Finch faces competition from companies like Atomic, Pinwheel, and Argyle, which focus on income and employment verification. Merge is a direct competitor offering a unified API for various business systems, including HR.
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        The potential risks associated with API systems increase along with Finch&rsquo;s growth. These include market fragmentation challenges of integrating over 6,000 HR and payroll systems, disintermediation and competition from major players, and data security and compliance risks of managing sensitive employee and payroll data.
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