HR tech startup Rippling has secured $450 million in a Series G funding round, bringing its valuation to $16.8 billion. In addition to the new capital, the company is launching a $200 million tender offer to provide liquidity for current and former employees.
This funding round represents a significant increase in valuation compared to the previous year. In April 2024, Rippling was valued at $13.4 billion after raising $200 million in a Series F round led by Coatue, along with a $590 million tender offer, of which $200 million was allocated to employees and the remaining $390 million to seed and other early investors.
The latest funding round saw participation from both new and existing investors. New investors include Sands Capital, GIC, Goldman Sachs Growth, and Baillie Gifford, while existing backers such as Elad Gil, Y Combinator, and others also took part.
Rippling, a standout success from Y Combinator’s winter 2017 cohort, has grown significantly over the years. Notably, Y Combinator reportedly became one of Rippling’s clients earlier this year.
In a LinkedIn post, the company shared that it currently supports over 15,000 startups, including Cursor (Anysphere), Clay, and Sierra. It also seems to be actively promoting its new stack by offering startups “six months of Rippling free.”
The recent surge in marketing efforts and capital raising comes as Rippling pursues legal action against competitor Deel, accusing the company of hiring an employee to gain access to its internal trade secrets. Deel, a fellow Y Combinator alum from the winter 2019 batch, responded with a countersuit in April, denying the claims and bringing forward allegations of its own.
With the latest funding round, Rippling’s total capital raised has reached $1.85 billion. The company now serves over 20,000 customers, employs more than 4,000 people, and has backing from notable investors such as Kleiner Perkins, Greenoaks Capital, and Founders Fund. According to insiders, Rippling recently achieved $570 million in annualized revenue.
Founded in 2016, Rippling has steadily expanded its product suite and now offers around two dozen solutions, including payroll and benefits, SSO and identity management, bill pay, and corporate cards. The newly raised capital will enable the company to speed up its entry into new markets, enhance its current offerings, and drive the creation of additional products.
