Rippling raises $450M at a $16.8B valuation, reveals YC is a customer

HR tech startup Rippling has raised a $450 cardinal Series G circular astatine a $16.8 cardinal valuation, the institution confirmed to TechCrunch. It is besides conducting a $200 cardinal tender connection to springiness existent and erstwhile employees immoderate liquidity.

The equity rise marks a large leap successful valuation from a twelvemonth ago. In April 2024, Rippling was valued astatine $13.4 billion erstwhile it raised a $200 cardinal Series F circular led by Coatue and a $590 cardinal tender offer, with $200 cardinal disposable for employees. (The different $390 cardinal was disposable for effect and different investors.)

The latest financing, which Bloomberg reported was successful the works past month, includes information from a radical of caller and existing investors. New backers see Sands Capital, GIC, Goldman Sachs Growth, and Baillie Gifford. Existing investors specified arsenic Elad Gil, Y Combinator, and others besides participated.

Rippling is 1 of Y Combinator’s galore breakout occurrence stories. It graduated from the wintertime 2017 cohort and YC seemingly became a lawsuit of Rippling’s earlier this year. 

In a caller case study, YC besides touted Rippling’s offering arsenic the HR “tool of choice” for “all of the accelerator’s founders. (Rippling adjacent present has a peculiar “Founder Mode” connection of discounted services for YC-funded companies.) 

Interestingly, Rippling CEO and co-founder Parker Conrad earlier this week shared much accusation astir his company’s caller Startup Stack, which appears to beryllium a propulsion to enactment with earlier-stage companies. In a LinkedIn post, the institution said it already works with implicit 15,000 startups, including Cursor (Anysphere), Clay, and Sierra. The institution appears to aggressively marketplace the caller stack, offering startups “six months of Rippling free.”

The summation successful selling and superior rise travel amidst a lawsuit Rippling has filed against rival Deel for allegedly hiring an worker to spy connected its interior commercialized secrets. Deel is besides a Y Combinator grad (winter 2019) and filed a countersuit against Rippling successful April, denying those allegations and making a fewer of its own.

With this latest superior injection, Rippling has present raised $1.85 billion. It has implicit 20,000 customers and much than 4,000 employees. Other investors see Kleiner Perkins, Greenoaks Capital, and Founders Fund. The institution recently reached $570 cardinal successful annualized revenue, according to sources who spoke to The Information.

Founded successful 2016, Rippling has evolved its offering implicit clip and present has 2 twelve products, including payroll and benefits, SSO and individuality management, measure pay, and firm cards. The caller superior volition assistance it accelerate its enlargement into caller markets, “enhance” existing products, and enactment the improvement of caller products.