HR Tech’s startup Ripling is valued at $16.8 billion after closing its $450 million funding round, the company confirmed Friday. This is a jump from the $13.5 billion valuation I posted a year ago.
In addition to the new funding, San Francisco-based Rippling said it plans to spend another $200 million in purchase stake from current and former employees. There were no lead investors in the round, but the company said it included Baillie Gifford, Elad Gil and Goldman Sachs Growth.
The funding news comes just two months after Rippling sued the salary launch of rivals over the theft of trade secrets in a high-stakes corporate spy case. Rippling claimed that one of the employees secretly shared internal company records with Deel executives and reporters.
Rip Ring raises $450 million and pushes its valuation to $16.8 billion amid slowing down IPO
The IPO window is still largely closed and with recent worsening trade tensions, advanced tech companies are now sticking to private capital. Parker Conrad, CEO of Ripling, told CNBC that the company is not ready for a public offer anytime soon.
He pointed to a shift in public market expectations over the past few years, especially after inflation surged and interest rates continued. As investors’ priorities change, many startups focused on reducing costs and leaving cash flow positive.
“To be successful in the open market, you need to be able to reduce your growth and increase your profitability,” said Conrad, who avoided layoffs. “And for us, the company pushes things out until it’s profitable and probably slows down, right?”
Rippling says its revenues are up more than 30% per year. The company did not share fresh figures, but previously reported recurring revenues of over $350 million at the end of 2023.
Profits are not an immediate focus for Conrad. Conrad says there is still room for growth in the company.
Startups have a mix of pay, device management and corporate credit cards that play against players like ADP, Paychex, Paycom, Paylocity and more. It is also competing with Deel, a private company that Rippling allegedly sued in March for planting spies to steal confidential information.
Conrad believes that the famous legal battle may have worked in their favour. “We’re looking at some companies that say, ‘Hey, we’re talking about rippling for this,'” he said.
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