Sparrow Raises 35M to Simplify Leave Compliance with AI

Sparrow Lands $35M Series B to Automate Leave Compliance

Employee leave policies are no longer simple. On Tuesday, Sparrow announced a $35 million Series B led by Silver Lake Waterman, bringing its total funding to $64 million. The capital will help the company expand its AI-powered platform that navigates evolving state and local leave regulations.

The shift to remote and distributed work has turned leave management into a compliance maze. With 14 states offering paid leave and local rules varying by city or county, HR teams juggle spreadsheets, paper forms, and manual processes to stay compliant—or risk costly errors.

Sparrow’s revenue has surged 14x since its Series A in 2021. Today, more than 1,000 customers, including OpenAI, Reddit, Chime, and Oura, rely on the platform to manage leave for over 500,000 employees. To date, Sparrow processed 2 million leave days and saved clients over $200 million in payroll costs.

AI-Powered Platform Tackles Fragmented Processes

• Ingests data from state agencies, insurance and medical providers into one unified system
• Automates form completion and submission across multiple jurisdictions
• Tracks deadlines, calculates wage replacement amounts, and manages communications
• Maintains up-to-date compliance workflows as regulations change in real time
• Displays intuitive dashboards for HR, managers, and employees

Beyond pure automation, Sparrow pairs AI with dedicated specialists. Each leave request is overseen from start to finish, ensuring sensitive cases—like accidents or medical emergencies—receive the right human touch when AI alone isn’t enough.

Customers report significant ROI. One anonymous client spent $250,000 in year one and saved $2.5 million in payroll. Wish saved $600,000 in 2023. Companies like SonderMind and Eightfold.ai note higher HR efficiency and stronger employee satisfaction as leave becomes simpler and error-free.

Navigating State and Global Regulations

Federal leave laws have remained largely unchanged since FMLA, but state-level programs have exploded in the last decade. Sparrow’s compliance engine covers all 50 states and Canada, automatically updating processes when new policies pass. Plans are underway to extend these capabilities to international markets.

As HR complexity climbs, Sparrow’s hybrid AI approach illustrates a growing trend: specialized automation backed by expert support. With remote work here to stay, companies are investing heavily to eliminate compliance headaches and free HR teams to focus on strategic initiatives.