KarmaCheck Raises $45 Million for Background Check, Credentialing Platform
KarmaCheck has raised $45 million in a Series B funding round to accelerate the development of its technology-based solution for background checks, credentialing and compliance.
The company will also scale its service levels and expand into new industry verticals, KarmaCheck said in a Thursday (June 27) press release.
By streamlining background checks and credentialing, the firm aims to ease what have been frustrating steps in the hiring process, Eric Ly, co-founder and CEO of KarmaCheck, said in the release.
“KarmaCheck focuses heavily on both technology innovation and expert-led customer service,” Ly said. “This combination, coupled with our AI-forward approach, is unique in the industry and enables us to deliver not only fast and accurate results, but also the industry’s best candidate experience.”
Ly, a co-founder of LinkedIn, formed KarmaCheck in 2019, according to the release.
The company’s platform provides staffing administrators with intuitive, automated dashboards and built-in application programming interface (API) integrations to applicant tracking systems, the release said.
For candidates, the platform delivers a mobile-friendly interface and the ability to schedule clinic-based screenings, per the release.
Over the past year, KarmaCheck has delivered millions of screenings, expanded its customer experience team by 300% and grown its revenue by 600%, per the release.
The sector served by KarmaCheck is critical and is “ripe for new approaches,” Douglass Romanoff, partner at Parameter Ventures, which led the funding round, said in the release.
“We couldn’t be more excited to support KarmaCheck as it brings its transformative solutions to professional background checks, enabling greater speed, simplicity and transparency fit for the modern workforce,” Romanoff said.
Background checks have traditionally been slow, manual and inefficient, often taking two or more weeks, Naeem Ishaq, executive vice president and chief financial officer at Checkr, told PYMNTS in an interview posted in May 2022.
“If the background check process is lengthy, difficult and confusing, applicants may give up and go elsewhere,” Ishaq said. “So, it’s vital that this stage is seamless and efficient to prevent candidates from giving up on a job that could be a strong fit.”
In another recent development in the human resources (HR) space, Rippling said in April that it raised $200 million in a Series F funding round for its workforce management platform.
Rippling’s platform brings together HR, information technology (IT), finance and more to create a single source for employee data.
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