Rippling, the fast-growing HR tech startup, has raised $450 million in a Series G funding round, pushing its valuation to a massive $16.8 billion, the company confirmed. The funding round also includes a $200 million tender offer, allowing both current and former employees to sell shares and gain liquidity—a significant move in today’s startup environment.
This marks a sharp increase in valuation from just a year ago. In April 2024, Rippling was valued at $13.4 billion after raising $200 million in a Series F round, alongside a $590 million tender offer. Of that amount, $200 million was earmarked for employees, while $390 million went to early-stage and seed investors. The latest round reflects both the company’s rapid financial growth and the increasing demand for robust HR infrastructure.
Rippling’s Series G round attracted participation from both new and existing investors. New entrants include Sands Capital, GIC, Goldman Sachs Growth, and Baillie Gifford. Meanwhile, returning backers like Elad Gil and Y Combinator—who helped launch Rippling through its winter 2017 cohort—also contributed to the round.
Rippling’s growth has solidified it as one of Y Combinator’s top success stories. In fact, YC became a customer earlier this year and has heavily promoted the platform. In a recent case study, the accelerator labeled Rippling as the “HR tool of choice” for all its founders, citing the platform’s ease of use and scalability. Rippling has even introduced a discounted “Founder Mode” tailored specifically for YC-backed startups.
Startup Stack and Market Reach
The Rippling HR tech startup continues to push aggressively into the startup ecosystem with its new Startup Stack. The offering is aimed at helping early-stage businesses set up critical back-office systems like payroll, benefits, identity management, and corporate cards. CEO Parker Conrad revealed more about this initiative in a recent LinkedIn post, stating that Rippling is already supporting over 15,000 startups, including notable names like Cursor (Anysphere), Clay, and Sierra.
The company is marketing this new bundle with an attractive incentive: six months of free service for qualifying startups. This move not only strengthens brand loyalty but also cements Rippling’s position as a foundational platform for scaling companies.
Despite its financial and product successes, Rippling is embroiled in legal drama. The company has filed a lawsuit against Deel, another Y Combinator alum, alleging that Deel hired one of Rippling’s employees to steal trade secrets. Deel has fired back with a countersuit, denying the allegations and accusing Rippling of misconduct.
This legal showdown highlights the intensifying competition in the HR tech space, especially as both firms vie for dominance in international payroll and compliance solutions. The outcome could significantly impact future dealings in the industry.
A Powerhouse in HR Tech
With this latest funding round, Rippling has raised a total of $1.85 billion since its inception in 2016. The company now serves over 20,000 customers and employs more than 4,000 people. Its annualized revenue recently hit $570 million, according to sources cited by The Information.
The company offers a robust suite of two dozen integrated products, ranging from payroll and benefits to SSO, device management, bill pay, and corporate cards. With the new capital, Rippling plans to expand into global markets, enhance its current products, and develop new offerings to solidify its position as a leading all-in-one HR solution.
The Rippling HR tech startup is clearly on a path of aggressive growth and market dominance. As it continues to scale, all eyes are on how it will manage its legal challenges, maintain customer satisfaction, and stay ahead in the fast-moving HR technology sector.
