In a notable move within the fintech landscape, Employer.com has acquired MainStreet.com for an undisclosed sum. This acquisition is part of Employer.com’s strategy to enhance its suite of workforce management solutions.

Details of the Acquisition

Jesse Tinsley, Chairman and co-founder of Employer.com, shared the news via a post on X. He outlined that the merging of these companies aims to streamline back-office business solutions into a singular, powerful platform. Tinsley confirmed this development in an interview with TechCrunch.

About MainStreet

Founded in 2019 and based in San Jose, California, MainStreet specialized in assisting startups in identifying and claiming research and development tax credits. Initially, the company was able to surpass the $1 million annual recurring revenue (ARR) mark and facilitated significant savings for its clients, averaging around $51,000.

In 2021, MainStreet’s revenue reportedly exceeded $15 million. However, in 2022, the company faced challenges and laid off approximately 30% of its workforce due to market difficulties. At its peak, the company was valued at $500 million, but later fundraising activities in 2022 brought the valuation down to $200 million.

Financial Outlook

The specifics of MainStreet’s financial status prior to the acquisition remain unclear. However, Tinsley noted that MainStreet was in a profitable position. Over its lifetime, MainStreet attracted nearly $75 million in known venture capital, with backing from firms such as SignalFire and Tusk Ventures.

Integration and Future Plans

As part of this transaction, MainStreet’s 15-member team will be incorporated into Employer.com, which already comprises around 500 employees across its various operations. Following this acquisition, Employer.com is now valued at over $700 million, according to Tinsley.

Recent Activity of Employer.com

This acquisition is not Employer.com’s first in recent months. The company also announced its purchase of Bench, a VC-backed accounting firm that faced operational difficulties, and previously attempted to acquire Level, another fintech entity.

Tinsley articulated that the overarching goal for Employer.com is to create an automated, end-to-end platform akin to the “G Suite for business back office.” He views the integration of MainStreet as a step toward achieving this objective.

Speculative Ventures

In addition to these acquisitions, Tinsley was reportedly involved in a significant bid to acquire TikTok alongside YouTuber MrBeast. Although the fate of this attempt remains uncertain, it highlights Employer.com’s broader ambitions in the tech space.