Checkr, a US-based background checking service that previously received funding from internet conglomerate Alphabet, raised $40m in a series B round yesterday led by incubator Y Combinator’s Continuity Fund.
Institutional Venture Partners and Accel Partners also supported the round, which was first reported in October 2015, when Checkr was said to be looking for at least $30m from investors.
Founded in 2014, Checkr operates a tool to screen potential employees and tenants by searching US databases including social security, national and country criminal records, driving offenses and the national sex offenders register.
The service is aimed primarily at the on-demand economy and counts ride-sharing app developer Uber and food delivery service GrubHub among its clients. Checkr claims to process more than 300,000 background checks each month.
The series B capital will help the company increase its market share as it hopes to attract peer-to-peer e-commerce, marketplace platforms and larger businesses.
Checkr raised $9m in a 2014 series A round led by Accel Partners. GV, which acts as Alphabet’s corporate venturing division of Alphabet, contributed to that round along with Khosla Ventures, SV Angel, Data Collective and assorted angel investors.
The company graduated from Y Combinator as part of the incubator’s August 2014 cohort, securing $120,000 in seed funding.