Bench’s陨落：Fintech’s Turbulent Journey Post Acquisition
Following its acquisition by Bain Capital Ventures for $5.8 billion in 2019, Bench—an Fintech leader in accounting software—saw its decline accelerate as its team was poached by Employer.com, a startup repositioning Bench to focus on payroll and HR services.
The Abrupt Decline of Bench
Bench’s abrupt closure led to the layoff of over 70 employees. The company’s offices were shut down, symbolizing its drastic shift in trajectory after a decade dedicated to revolutionizing accounting software.
Employer.com’s E bid for Revitalization
In an effort to salvage Bench, Employer.com acquired it with the aim of rebranding and expanding into payroll and HR services. However, this move faced significant challenges, including difficulty in maintaining customer trust due to service disruptions and ambiguous notice periods.
Customer Experiences and Uncertainty
Customers faced uncertainty as their accounts were left hanging without mandatory extensions. Many chose to file for six-month extensions or face the disruption of a new bookkeeper. The 30-day contracts offered by Employer.com were seen as a expedient measure, though concerns about service quality remained unresolved.
Broader Industry Implications
This episode highlights Fintech’s resilience and vulnerabilities when disrupted by startups, particularly in competitive markets where rapid change can render established players obsolete.
Bench’s story serves as a cautionary tale for the industry, underscoring the risks of sudden shifts in business models and reliance on acquisition expertise.