Rippling Valuation: $16.8B After $450M Raise - YC as Customer

Rippling Secures $450 Million in Series G Funding

HR technology company Rippling has successfully completed a $450 million Series G funding round, resulting in a company valuation of $16.8 billion. This information was confirmed by the company to TechCrunch.

In addition to the equity raise, Rippling is also initiating a $200 million tender offer. This offer is designed to provide liquidity options for both current and former employees.

Significant Valuation Increase

This funding round represents a substantial increase in valuation compared to the previous year. In April 2024, Rippling’s valuation stood at $13.4 billion following a $200 million Series F round.

That prior round was spearheaded by Coatue and included a $590 million tender offer, with $200 million specifically allocated for employees and an additional $390 million available to seed investors and others.

Investor Participation

The recent financing involved both new and existing investors. New investors joining the round include Sands Capital, GIC, Goldman Sachs Growth, and Baillie Gifford.

Existing investors, such as Elad Gil and Y Combinator, also contributed to this latest funding effort.

Y Combinator Success Story

Rippling is recognized as a prominent success story originating from Y Combinator. The company was part of the winter 2017 cohort.

Notably, Y Combinator itself became a client of Rippling’s services earlier in the year.

Rippling as a Preferred HR Tool

A recent case study highlighted Rippling as the preferred HR solution for all founders participating in the Y Combinator accelerator program.

To further support Y Combinator-backed companies, Rippling now offers a special “Founder Mode” providing discounted services.

Focus on Early-Stage Companies

Parker Conrad, Rippling’s CEO and co-founder, recently detailed the company’s new Startup Stack initiative. This appears to be a strategic move to increase engagement with companies in their early stages.

Rippling currently serves over 15,000 startups, including Cursor (Anysphere), Clay, and Sierra, and is actively promoting the new stack with a “six months of Rippling free” offer.

Legal Dispute with Deel

The capital raise and increased marketing efforts coincide with an ongoing lawsuit filed by Rippling against competitor Deel.

Rippling alleges that Deel engaged in corporate espionage by hiring an employee to obtain its internal trade secrets. Deel, also a Y Combinator graduate, filed a countersuit in April, denying the allegations and presenting counterclaims.

Total Funding and Company Growth

With this latest funding, Rippling’s total funding now reaches $1.85 billion. The company boasts a customer base exceeding 20,000 and employs over 4,000 individuals.

Additional investors include Kleiner Perkins, Greenoaks Capital, and Founders Fund. Recent reports indicate an annualized revenue of $570 million.

Product Evolution and Future Plans

Since its founding in 2016, Rippling has significantly expanded its product portfolio to include over two dozen offerings.

These products encompass payroll and benefits administration, SSO and identity management, bill payment solutions, and corporate cards.

The newly acquired capital will be utilized to accelerate expansion into new markets, improve existing products, and facilitate the development of innovative new solutions.