Application programming interface (API)-first payroll infrastructure provider Zeal has ended a Series A funding round with $13 million, according to a press release.
Zeal works in the embedded finance ecosystem and lets platforms build individualized pay platforms, the release stated. The new capital will be used to grow the company’s team and scale the product to help meet new levels of demand.
“There are so many services that want to embark on their journey to becoming a FinTech company,” said Zeal CEO and Co-Founder Kirti Shenoy in the release. “Payroll is a sticky product that provides platforms with a wedge to help them launch their next 5-10 financial offerings including business and health insurance, lending, cards and wallets, etc. In the past, it was really difficult for platforms to build payroll because of the risks and maintenance associated with taxes and payments, and that’s exactly where Zeal steps in.”
Enterprises that pay large amounts of workers have used Zeal to build a custom payroll product better suited for their needs, according to the release. This can allow for more payments automation and lets companies keep payments data on their own native systems.
The round was led by Spark Capital, with participation from Commerce Ventures, the release stated. Nnotable individual investors including: Marqeta CEO and Founder Jason Gardner and Chief Revenue Officer Omri Dahan; Robinhood Founder Vlad Tenev; UltimateSoftware Executive Vice President Mitch Dauerman and Senior Vice President Bob Manne; and Namely Founder Matt Straz.
In other news, accounts receivable (AR) teams have been facing more sizeable workloads, with smart programs letting accountants do more work than usual. Manual work setups make things even more difficult.
A total of 93 percent of companies experience late pay, and the average payment period could last 34 days as opposed to the expected 27-day term. Delayed payments are one of the more acute pain points for companies, and organizations relying on money being in the right place at the right time can be spun out by deviations.