New York-based embedded payroll startup Salsa continues to gain momentum.
With a newly secured $20 million in Series A funding, its total capital is $30 million since its founding in 2021, according to a press release issued Tuesday (April 22).
The round was led by Altos Ventures, with additional participation from Greycroft, SemperVirens, Definition and Better Tomorrow Ventures, the release said.
In a statement, Altos Ventures Partner Tae Yoon said, “Payroll is one of the clear next frontiers in embedded FinTech. … We are thrilled to partner with Salsa as it becomes the foundational layer for payroll across entire industries.”
The new funding will support Salsa’s efforts to help software platform developers in all 50 U.S. states and Canada embed payroll features in their products that they didn’t previously have, the release said.
This includes launching integrated payroll offerings and tools that streamline tasks like worker onboarding, tax filings and tracking commissions, tips, overtime and employees who work in multiple locations — all without the need to have in-house payroll expertise.
“This funding lets us double down on automation, flexibility, and deep support in industries where payroll is hardest to get right,” Salsa CEO John Kramer commented in the release. That includes health care and personal services.
The embedded payroll market is becoming more competitive, with startups like Check, Zeal and Gusto also seeking to provide payroll infrastructure to software providers.
In the release, Salsa reported a tenfold increase in business during 2024, followed by a doubling of growth in the first quarter of 2025. It’s no small feat considering that FinTech funding — like a lot of things — is in a period of deep uncertainty due to tariff turmoil and market turbulence.
For example, PYMNTS reported that FinTech companies have been pausing and reconsidering IPOs throughout April as a precaution. The list includes Chime and buy now, pay later (BNPL) provider Klarna.
In other payroll news, Papaya Global and AKT announced a rollout of a tech product integration for multinational companies that use SAP software. It reportedly takes care of payroll and compliance on a global scale.
