HR software maker Rippling closes $200M round at $13.5B valuation – Business
Rippling People Center Inc., a startup that sells workforce management software and several related products, has raised $200 million in late-stage funding at a $13.5 billion valuation.
The company detailed in its announcement of the raise today that Coatue was the lead investor. The deal, a Series F investment, also saw the participation of several other institutional backers including Greenoaks, which led Rippling’s previous $500 million round last March. The software maker’s total outside funding now stands at about $1.4 billion.
In conjunction with the new financing round, Rippling announced a secondary sale worth up to $590 million. The transaction will allow current and former employees, as well as early investors, to sell some of their equity.
Rippling’s flagship offering is a cloud platform designed to help human resources teams carry out their work more efficiently. The platform’s feature set covers payroll administration, employee onboarding and other day-to-day HR tasks. A built-in automation tool allows users to create workflows that can perform repetitive chores without manual input.
Alongside its core HR platform, Rippling offers two other software-as-a-service products. The first targets accounting departments, while the other is geared towards information technology professionals.
Rippling’s accounting platform is designed to streamline tasks such as planning budgets and issuing corporate credit cards. Its service for IT teams, in turn, reduces the amount of work required to set up employee devices. The latter offering also lends itself to several related use cases including application access management and compromised device detection.
“Rippling’s core thesis is that employee data is critical to a surprisingly large number of business systems, including the ones well outside of HR,” Chief Executive Officer Parker Conrad wrote in a blog post today. “Products that are built on top of a rich graph of data about the organization, employees, their devices and apps aren’t just easier to manage. They are better as software products.”
Rippling disclosed after its previous funding round last March that it was generating more than $100 million in annual recurring revenue. Last month, the Information reported that this number has since jumped to over $350 million. It’s believed the company’s expansion beyond HR software to the IT and accounting segments is one of the contributors to this growth.
According to TechCrunch, Rippling will use its latest funding round to bolster its product portfolio with a fourth cloud service. Conrad told the publication that the offering will target a “completely different area” without elaborating. He added that Rippling plans to equip its software with more artificial intelligence features.