HR tech startup Rippling has raised $450 million in new funding, reaching a total value of $16.8 billion, the company told TechCrunch. It also offers $200 million to let current and former employees sell some of their shares and get cash.
This new funding shows a significant increase in Rippling’s value compared to last year. In April 2024, the company was worth $13.4 billion when it raised $200 million in a Series F round led by Coatue. At that time, there was also a $590 million offer to buy shares—$200 million of that was for employees, and the other $390 million was for early and other investors.
The latest funding round, which Bloomberg mentioned last month, includes money from both new and existing investors. New investors include Sands Capital, GIC, Goldman Sachs Growth, and Baillie Gifford. Some of Rippling’s earlier investors, like Elad Gil, Y Combinator, and others, also joined in again.
Rippling is one of the big success stories that came out of Y Combinator. It joined YC’s winter 2017 program, and earlier this year, Y Combinator even became one of Rippling’s customers.
In a new case study, Y Combinator praised Rippling as the top HR tool used by all of its startup founders. Rippling now even has a special “Founder Mode” deal that gives discounted services to companies funded by YC.
Interestingly, Rippling CEO and co-founder Parker Conrad recently shared details about the company’s new Startup Stack, which seems focused on helping early-stage startups. In a LinkedIn post, Rippling said it already works with over 15,000 startups, including companies like Cursor (Anysphere), Clay, and Sierra. The company is promoting this new Startup Stack strongly, offering startups “six months of Rippling free.”
Rippling’s boost in marketing and new funding comes while it’s involved in a legal fight with rival company Deel. Rippling claims that Deel hired one of its employees to gather trade secrets secretly. Deel, which also went through Y Combinator in the winter of 2019, responded by filing its lawsuit in April, denying Rippling’s claims and making some accusations of its own.
With this new funding, Rippling has now raised a total of $1.85 billion. The company has over 20,000 customers and more than 4,000 employees. Some of its other investors include Kleiner Perkins, Greenoaks Capital, and Founders Fund. According to sources who spoke to The Information, Rippling recently reached $570 million in yearly revenue.
Founded in 2016, Rippling has evolved its offering over time and now has two dozen products, including payroll and benefits, SSO and identity management, bill pay, and corporate cards. The new capital will help it accelerate its expansion into new markets, “enhance” existing products, and support the development of new products.
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