Rippling Raises $450M, Valuation Soars to $16.8B

Rippling Secures $450M in Series G, Reaching $16.8B Valuation

HR tech company Rippling has announced a $450 million Series G funding round, propelling its valuation to $16.8 billion. The company also launched a $200 million tender offer for current and former employees.

This latest funding round represents significant growth from Rippling's $13.4 billion valuation in April 2024 following its Series F. The new investment includes participation from new investors like Sands Capital, GIC, Goldman Sachs Growth, and Baillie Gifford. Existing investors such as Elad Gil, Y Combinator, and others also participated.

Y Combinator Joins Rippling's Customer Roster

Notably, Y Combinator, the renowned startup accelerator, has become a Rippling customer. A case study highlights Rippling as the preferred HR tool for YC founders. Rippling now offers a "Founder Mode" with discounted services for YC-backed companies.

Rippling Focuses on Startup Growth

Rippling CEO Parker Conrad recently unveiled the company's "Startup Stack," designed to support early-stage businesses. Rippling already serves over 15,000 startups, including Cursor (Anysphere), Clay, and Sierra, and is offering six months of free service to new startup clients.

Ongoing Legal Battle with Deel

This growth comes amidst an ongoing legal dispute with competitor Deel. Rippling alleges Deel hired an employee to steal trade secrets. Deel, also a Y Combinator graduate, has filed a countersuit denying the allegations.

Rippling's Continued Expansion

With this latest investment, Rippling has raised a total of $1.85 billion. The company boasts over 20,000 customers and more than 4,000 employees. Other investors include Kleiner Perkins, Greenoaks Capital, and Founders Fund. Recent reports indicate Rippling has reached $570 million in annualized revenue.

Founded in 2016, Rippling offers over two dozen products, including payroll, benefits, SSO, identity management, bill pay, and corporate cards. The new funding will fuel expansion into new markets, enhance existing products, and support the development of new offerings.