Employer.com has finalized the acquisition of MainStreet.com for an undisclosed sum, marking the latest fintech startup to be acquired by the workforce management company.

In a post on X, Employer.com Chairman and co-founder Jesse Tinsley announced that the two companies are “combining forces to streamline business back office solutions into a single, powerful platform.” Tinsley confirmed the acquisition to TechCrunch, highlighting the strategic alignment between the two companies.

MainStreet, a San Jose, California-based startup founded in 2019, specialized in helping startups uncover research and development tax credits. The company generated revenue by taking a percentage of the credits. MainStreet achieved significant success in its first year, surpassing the $1 million ARR threshold and saving the average client $51,000. By 2021, MainStreet’s revenue had reached $15 million, according to industry newsletter Not Boring.

However, signs of potential trouble emerged in 2022 when MainStreet laid off approximately 30% of its staff, citing a challenging market. At its peak in 2021, MainStreet was valued at $500 million, but the company’s valuation decreased to $200 million in 2022 after a financing round. According to PitchBook, MainStreet raised $31 million in Series B funding from investors such as Alumni Ventures, Ethos Fund, and Scribble Ventures in June 2022.

The details of MainStreet’s financial situation immediately prior to the acquisition are unclear, although Tinsley stated that the company was profitable. MainStreet had raised nearly $96 million in venture capital from investors, including SignalFire, Tusk Ventures, Shrug, Moxxie Ventures, Weekend Fund, Gradient Ventures, Sound, and SV Angels.

One of MainStreet’s investors introduced the company to Employer.com, leading to the acquisition. As part of the transaction, MainStreet’s 15-person team will join Employer.com, which has approximately 500 employees across all its companies.

Following the acquisition, Employer.com’s valuation has increased to over $700 million, according to Tinsley.

Employer.com has been actively expanding its portfolio through strategic acquisitions.

In late 2024, the company announced the acquisition of Bench, a VC-backed accounting startup that suddenly shut down, leaving thousands of customers without access to their accounts. Last week, Bench conducted a significant round of layoffs. Additionally, Employer.com offered to acquire Level, a fintech startup that shut down after failing to find a buyer, but the deal did not materialize.

Tinsley explained that the acquisition of MainStreet aligns with Employer.com’s goal of creating an end-to-end platform for business back office solutions. “When we started Employer.com and acquired Bench, our overarching theme was to automate a comprehensive platform for the G Suite for business back office,” he said in an interview.

In January, Tinsley and Employer.com were reportedly part of a group submitting an all-cash bid to acquire TikTok, alongside YouTuber MrBeast and others. Although the status of this alleged bid is unclear, Tinsley publicly confirmed his involvement in the $30 billion bid in March.