Rippling Secures 450 Million Series G Funding at 16.8 Billion Valuation

Rippling, a prominent HR technology startup, has successfully raised $450 million in a Series G funding round, elevating its valuation to an impressive $16.8 billion. This latest capital injection marks a significant increase from its April 2024 valuation of $13.4 billion during its Series F funding. Alongside this equity raise, Rippling is conducting a $200 million tender offer aimed at providing liquidity to current and former employees, reflecting its commitment to stakeholder value.

The funding round attracted participation from both new and existing investors. Notable new investors include Sands Capital, GIC, Goldman Sachs Growth, and Baillie Gifford, while existing backers such as Elad Gil and Y Combinator also reinforced their support. Rippling’s roots trace back to Y Combinator’s winter 2017 cohort, and the accelerator has since become a client and advocate, endorsing Rippling as the preferred HR platform for its founders.

In a strategic move to capture the startup market, Rippling recently introduced its Startup Stack, offering discounted and free services for early-stage companies. This initiative already serves over 15,000 startups, including notable names like Cursor, Clay, and Sierra. The company’s aggressive marketing campaign includes a six-month free trial, designed to attract and retain emerging businesses seeking integrated HR solutions.

Despite its growth trajectory, Rippling is navigating legal challenges, having filed a lawsuit against competitor Deel for alleged corporate espionage. Deel, also a Y Combinator alumnus, has denied the allegations and filed a countersuit. These legal disputes underscore the competitive intensity within the HR tech sector.

Founded in 2016, Rippling has expanded its product portfolio to include payroll, benefits administration, single sign-on (SSO), identity management, bill payment, and corporate cards, totaling over two dozen offerings. With more than 20,000 customers and 4,000 employees, the company recently achieved $570 million in annualized revenue. The new capital will fuel market expansion, product enhancements, and the development of innovative HR solutions.

Rippling’s evolution reflects broader trends in HR technology, where integrated platforms streamline workforce management for startups and enterprises alike. Its focus on startups through tailored offerings and aggressive marketing positions it as a key player in democratizing access to sophisticated HR tools, fostering innovation and operational efficiency across the tech ecosystem.