San Francisco-headquartered HRtech startup Rippling is in talks to raise new funding of $870 million valuing it at $13.4 billion. Last year, the company secured $500 million in a Series E round, which valued it at $11.25 billion.
Upcoming funding plans
As per TechCrunch, the upcoming round is said to include a $200 million injection of capital and $670 million of shares being sold by existing stockholders. It is also reported that existing investor Napoleon Ta at Founders Fund is prepared to invest up to another $310 million. This would be the largest check that Founders Fund has ever written for a single company’s round. In addition, existing investor Coatue (invested in Ramp and GoStudent) will lead the round alongside participation from Greenoaks.
Rippling’s last round came during the Silicon Valley Bank crisis, when the company’s funds were suddenly frozen. The company extended its own capital to fund its customers’ payments to employees, hoping to recover funds from the Federal Deposit Insurance Corp. (FDIC).
Going by the report, the upcoming Series F round would add to the total of $1.2 billion Rippling has raised until now.
Notably, the talks with investors are ongoing, with plans to finalize terms within a few weeks, people familiar with the matter said. The discussions are still fluid and the numbers could change.
Funds utilisation
The San Francisco-based startup will use the new funds to land more mid-size business customers internationally and continue building more products. The company recently signed a 123,000-square-foot lease in San Francisco for office space that would give it room to hire hundreds more people. The lease is the city’s second-largest of the year, said the outlet.
Automation-focused HRtech
Cloud-based HRtech platform Rippling was founded by Parker Conrad and Prasanna Sankar in 2016. It is designed to assist with onboarding, payroll, benefits, and vacation tracking. The automation-focused HR software and service solution suited for small, mid-size and enterprise businesses that want to provide an effortless employee onboarding experience.
The employee management platform streamlines people operations with the help of intuitive automation. Employers can send offer letters, run background checks, collect new-hire paperwork, add employees to payroll, and process health insurance enrollments.
The platform can also be used to order and ship work equipment to new hires and set them up with everything they need to be successful, including Google Workspace, Slack and Microsoft 365.
