19-04-2025
Exclusive: Checkr buying employment verification startup Truework
Checkr, an API-based background check provider, is acquiring income and employment verification startup Truework, Checkr CEO Daniel Yanisse tells Axios exclusively.
Why it matters: The deal marks the latest consolidation among fintech infrastructure providers, as maturing startups are folded into scaled platforms.
Checkr declined to disclose the structure and deal valuation.
State of play: Yanisse says Checkr — last valued at $5 billion — will continue to be an active acquirer, particularly as valuations have come down and more founders are open to talks.
"The path to liquidity and IPOs is long, and the bar is extremely high. So I think many founders realize that the way to do it will be to join forces, either with other fintechs or larger companies," Yanisse says.
The big picture: Checkr already has an employment verification product, but Yanisse says Truework's AI and automation use simplifies verification.
"We have a pretty good [employment verification] solution, but Truework's workflow, process, product, and performance is just 10x," Yanisse says.
Between the lines: The deal also gives Checkr a pathway to serving more verticals, like financial services and property management.
Truework serves eight of the top 10 U.S. lenders by origination volume and is integrated with property management platforms like Fortress and RentCafe.
"That allows us to expand the use cases and the markets where our data platform can go to and deliver value to more new types of customers," Yanisse says.
Catch up quick: San Francisco-based Truework has raised a little over $125 million since being founded in 2017 and was most recently valued at around $480 million, according to PitchBook.
Investors include Sequoia Capital, Activant Capital, Khosla Ventures, G Squared and TransUnion.
Founded in 2014, San Francisco-based Checkr has raised nearly $680 million, from investors like Accel, Y Combinator, Google, T. Rowe Price, and common investor Khosla Ventures.
What's next: Yanisse says Truework will be offered standalone, and its team will continue to develop it independently. At the same time, the two companies are working on a multi-year integration plan.
