A software product solely built for employee background checks may not sound like the most exciting thing to come out of Silicon Valley. But for Y Combinator-backed startup Checkr, interest in its platform is at its peak.
The company today announced it has raised a $40 million Series B round, led by the Y Combinator Continuity Fund, with Institutional Venture Partners, Google Ventures and Accel participating.
Checkr's basic premise is that it offers a more simplified means of vetting prospective workers. It does so by scanning data including social security numbers, address history, driving records, and national and county criminal records.
Businesses can integrate Checkr into their hiring and onboarding software via APIs, or just opt to use Checkr's online form.
Unlike other Valley startups these days, Checkr claims it is already profitable. Much of its success can likely be tied to its user base. Since launching in 2014, Checkr has built an impressive customer list including Uber, Instacart, GrubHub, and DoorDash.
The common thread among those customers is what's commonly referred to as the "on-demand economy," where the likes of delivery startups and driver services require background checks on a rapidly scaling workforce.
With its additional funding, Checkr said it plans expand its services to appeal to a wider range of companies, including peer-to-peer commerce and marketplace businesses, as well as larger enterprises. Checkr's early customers in these spaces include Warby Parker, Zenefits, and Workable.