Background check expert Checkr doubles valuation to $4.6bn with new funding

Unleash Your PotentialCEO Daniel Yanisse wants funding to propel mission “to build infrastructure for the future of work”.

HR technology company Checkr has raised $250m in a Series E funding round and is now valued at $4.6bn; more than doubling its previous $2.2bn valuation from earlier in 2021.

The San Francisco-based company says its AI-driven processes perform more than 30 million employee background checks every year for clients including Uber Technologies, Lyft, Airbnb and Netflix.

Bloomberg reports the funding round was led by Durable Capital, with new investors named as Fidelity Management & Research Co. and Franklin Templeton.

Checkr CEO Daniel Yanisse said the firm’s revenue now tops $200m, and it moved into profit this year for the first time since launching in 2014.

What’s in store for Checkr?

With an eye on flexible working schedules springing up across industries around the world, Checkr aims to streamline the digital hiring process, Yanisse noted.

“My vision for the… next five to 10 years, is really to continue to build more infrastructure for hiring in the future of work,” he said.

“We are seeing a growing need for innovative technology to support a new way of identifying, onboarding, engaging, and even delivering pay and benefits to workers.”

Checkr may seek an IPO in the near future, Yanisse added, but for now is set to focus on expanding its product offerings and will consider potential acquisitions.

The business describes itself as the “faster and more fair” way to “modernize the background check process, and make hiring more efficient and inclusive”.

Employers can examine candidates using criminal records checks, drug screenings and education verification using the platform, according to Checkr’s website.

Talking about the round, Durable Capital Partners’ partner Corey Shull said: “We’ve been impressed by the upward trajectory of Checkr, which we believe is well-positioned to grow even larger and scale its business.

“As the world shifts to a flexible workforce with more contractors and contingent labor, Checkr is unique in its ability to provide solutions that enable employers to expand and onboard talent quickly and securely.

“We’re excited to partner with Checkr as it pursues its strategy for long-term sustainable growth.”