Sparrow raises $35M Series B to automate leave management
What's the deal? Sparrow, a San Francisco-based HR technology company focused on employee leave management, has raised $35 million in a Series B round. SLWDealroom has a profile for this one. Try Dealroom → led the financing, with existing backer WndrCo — which led the previous round — also taking part. The round brings Sparrow's total funding to $64 million.
What's the endgame? Sparrow's platform pairs automated compliance processing with personalized support to handle leave workflows across the US and Canada. The new capital will scale that core product and push into adjacent areas of labour law compliance. The company is hiring across engineering, product, operations, sales, and marketing.
Why now? Managing leave means navigating shifting local regulations, wage replacement laws, insurance policies, and payroll adjustments — a heavy administrative load for HR teams. "Leave is complicated and stressful," said Deborah Hanus, chief executive officer and co-founder of Sparrow. "Everything is always changing, and no one has the data they need when they need it."
By the numbers: Sparrow serves more than 1,000 companies, including OpenAI, Reddit, Eightfold AIDealroom has a profile for this one. Try Dealroom →, Oura, and Chime. At the Society for Human Resource Management (SHRM)Dealroom has a profile for this one. Try Dealroom →, leave ranks among the top inquiries from its 325,000-plus members, who generate more than 60,000 HR support calls a year, according to chief transformation officer Andy Biladeau.
The signal: The $35 million round lands in the upper tier for its stage, placing it around the 77th percentile by amount. Investors are framing Sparrow as an AI compliance play within the broader Human Capital Management (HCM) software market. "Sparrow is addressing one of the most complex and underserved areas of HR by utilizing AI to automate the manual, error-prone tasks that companies and employees encounter today," said Matt Walsh, managing director at SLW.
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Image credit: Sparrow
