Ripples raised $450 million at a valuation of $16.8 billion, revealing that YC is a customer

HR Tech Startup Rippling has raised a $450 million Series G round at a valuation of $16.8 billion, the company confirmed to TechCrunch. It also implements a $200 million tender offer to provide some liquidity to current and former employees.

Equity shows a big jump in ratings from a year ago. In April 2024, Rippling raised a $200 million Series F round led by Coatue, making a $590 million tender offer, valued at $13.4 billion as it made $200 million available to employees. (The other $390 million was available to seeds and other investors.)

The latest funding reported by Bloomberg last month includes participation from a group of new and existing investors. New supporters include Sands Capital, GIC, Goldman Sachs Growth and Baillie Gifford. Existing investors such as Elad Gil and Y Combinator also participated.

The Rip Ring is one of the many breakout success stories of Y Combinator. Graduated from the winter 2017 cohort, YC appears to have become a Rippling client earlier this year.

In a new case study, YC also touted the offering of Rippling as a “tool of choice” for “HR for all Accelerator founders” (Rippling offers a special “start-up mode” of YC-funded discount services for businesses).

Interestingly, earlier this week, Ripling CEO and co-founder Parker Conrad shared more information about his company’s new startup stack. In a LinkedIn post, the company said it has already worked with over 15,000 startups, including Cursor (Anysphere), Clay and Sierra. The company appears to be actively selling new stacks, offering startups “free to ripple for six months.”

Increases in marketing and capital pay raises have been filed as a rippling lawsuit was filed against rival deals and employees allegedly hired to spy on internal trade secrets. Deel is also a graduate of Y Combinator (winter 2019), and in April he filed a counter-sue against the wavy opponents, denying those allegations and creating some of his own.

With this latest capital injection, Rippling has raised $1.855 billion. We have over 20,000 customers and over 4,000 employees. Other investors include Kleiner Perkins, Greenoaks Capital and Founders Fund. Sources who spoke about the information said the company recently reached an annual revenue of $570 million.

Founded in 2016, Rippling has evolved its offering over time and now has 20 products including pay and benefits, SSO and identity management, bill payments, and corporate cards. New capital helps accelerate expansion into new markets, “strengthen” existing products and support the development of new products.