Rippling Secures $450M Funding Round, Achieves $16.8B Valuation, and Welcomes YC as a Key Customer

Rippling, a leading HR tech startup, has recently secured a significant funding boost, raising $450 million in a Series G round and achieving a remarkable valuation of $16.8 billion. This funding round, coupled with a $200 million tender offer for current and former employees, highlights Rippling’s rapid growth and robust position in the HR technology sector.

Significant Funding and Valuation Growth

The latest equity raise marks a substantial increase in Rippling’s valuation compared to last year. In April 2024, the company was valued at $13.4 billion following a $200 million Series F round, led by Coatue, along with a $590 million tender offer that included $200 million designated for employees.

Investor Participation in Series G Round

According to Bloomberg, the recent financing attracted a mix of new and existing investors. Notable new participants include:

• Sands Capital
• GIC
• Goldman Sachs Growth
• Baillie Gifford

Additionally, established investors such as Elad Gil and Y Combinator also contributed to the funding.

Rippling’s Journey and Success

Graduating from Y Combinator’s winter 2017 cohort, Rippling has become one of its standout success stories. Recently, Y Combinator acknowledged Rippling as the HR “tool of choice” for its founders, further solidifying its reputation in the startup ecosystem. The company offers a special “Founder Mode” that provides discounted services to Y Combinator-funded startups.

Innovative Solutions for Startups

Rippling CEO and co-founder Parker Conrad recently introduced the new Startup Stack, aimed at supporting early-stage companies. The initiative already serves over 15,000 startups, including Cursor (Anysphere), Clay, and Sierra. To attract new clients, Rippling is offering “six months of Rippling free” to startups.

Legal Challenges Amidst Growth

The recent capital raise comes during a legal dispute, as Rippling has filed a lawsuit against competitor Deel, alleging that Deel hired an employee to steal trade secrets. Deel, a fellow Y Combinator graduate from winter 2019, has filed a countersuit, denying Rippling’s allegations while making its own claims.

Current Metrics and Future Outlook

With this latest funding, Rippling has raised a total of $1.85 billion, serving over 20,000 customers and employing more than 4,000 staff members. Other notable investors include Kleiner Perkins, Greenoaks Capital, and Founders Fund. Recent reports indicate that Rippling has achieved an annualized revenue of $570 million.

Founded in 2016, Rippling has diversified its offerings to include a wide range of products such as:

• Payroll and benefits
• Single Sign-On (SSO) and identity management
• Bill pay
• Corporate cards

The newly acquired capital will enable Rippling to further expand into new markets, enhance existing products, and develop innovative solutions tailored for its growing customer base.

For more information about Rippling and its offerings, visit Rippling’s official site.