Rippling, a company payroll and spend management fintech, has recently raised $500 million in a Series E financing at a valuation of $11.25 billion after one of its venture-capital backers rushed to shore up the workforce management software provider following the collapse of Silicon Valley Bank. Greenoaks Capital led the round, giving the company the same valuation it fetched in funding last year, despite a market correction that’s prevented most startups from raising money at favourable terms.
With this latest funding, the startup plans to accelerate its growth and expand its product offerings, including payroll and benefits services. It aims to revolutionize the HRTech industry with its all-in-one platform that combines HR, IT, and operations services. It is also exploring potential acquisitions to strengthen its position in the market further.
Co-founded by Parker Conrad and Prasanna Sankar in 2016, Rippling is the first platform that allows an individual to manage all people operations in one place—from onboarding to offboarding and everything in between. It is on a mission to eliminate the administrative work of running a company. The firm believes that people should focus on the hard stuff that only people can do, and that software should manage the rest. It’s Custom Workflow Builder lets one simultaneously automate nearly any manual process across multiple systems. No code is required.
Speaking about the latest development, Co-founder & CEO of Rippling, Parker Conrad, said:
$545 million of our customers’ money was still locked up at SVB. We had several sources of capital, but raising a funding round was our best option. The round is at a good price that we believe reflects our performance, especially given the change in the fundraising backdrop over the last year.
Now, we’ve recovered all funds from SVB, and our balance sheet holds just shy of $1 billion in cash.
With Rippling, one can quickly build and visualize any report they want—from a PTO to a SOC report—without having to be a SQL wizard. All it takes is a few clicks to add, group, calculate, and filter the data the exact way they want. The platform also lets one instantly generate any document—offer letter, employee handbook, I-9, severance, and more—and collect electronic signatures from employees and signatories. Know which are viewed and unsigned, and take action, like sending bulk reminders.
Following the Federal Deposit Insurance Corporation (FDIC) takeover of SVB on 10 March, Rippling extended $130 million of its capital to fund customer payments to their employees.
Last year in May, Rippling raised $250 million in a funding round co-led by Bedrock and Kleiner Perkins, with participation from existing investors Y Combinator, Sequoia Capital, and more.