The round could total $870 million, including $670 million worth of secondary funding.
Late-stage HRtech startup Ripped is raising new funding. The company's new round, which has not yet been completed, will inject $200 million into Rippling, with an additional $670 million worth of shares sold by existing shareholders, according to two people familiar with the deal. It's planned.
This will be Rippling's Series F, with a post-money valuation that could rise to as much as $13.4 billion, which it reached when it last raised a $500 million Series E exactly a year ago. That's more than its valuation of $11.25 billion. Rippling had raised a total of $1.2 billion prior to this round.
Reached early today, a Rippling spokesperson declined to comment.
Rippling's last round came together during the Silicon Valley banking crisis, when Rippling's funds were abruptly frozen. Rippling founder and CEO Parker Conrad embarked on his X, working on the phone with banks, investors, and his own customers to raise the cash needed to cover everyone's salaries.
Most notably, Founders Fund's existing investor Napolian Ta is willing to invest up to an additional $310 million in this round, according to two people familiar with the deal. , this is the largest check ever written by Founders Fund for a single company round. . Existing investor Cotu is actually leading the round, so how much of this cash will go toward new Series F shares, and how much will be used to buy stock from other investors. It is unknown whether Existing investor Greenoaks is also participating.
It's no shock that Rippling has raised even more money in a year. The HRtech market for payroll services and remote labor management is growing significantly, with many well-funded late-stage startups. Gusto, a rival company that's making waves, told TechCrunch that it had $500 million in revenue last year and strong cash flow. Deal, which focuses on payroll for cross-border teams, announced earlier this year that it had reached the equivalent of $500 million in annual recurring revenue.
Per Crunchbase data, Gusto is worth about $9.5 billion, Deel is worth $12 billion, Remote is worth over $3 billion, and Ripling is currently worth $13.5 billion, which is a huge amount for HRtech today. There is venture capital, founder and employee capital. And new companies are being born one after another. For example, Remofirst recently raised $25 million to continue working on developing a low-cost recruitment product that will compete with many of the companies mentioned above.
Similarly, as the IPO market remains depressed, existing shareholders, such as employees and existing investors, are also looking to sell shares in private companies to gain liquidity. Large-scale secondary transactions are in vogue.