HR tech startup Rippling has raised $450 million in a Series G funding round, catapulting its valuation to $16.8 billion. This marks a significant leap from its $13.4 billion valuation in April 2024.
The latest round, which includes a $200 million tender offer for employees, follows a similar structure to its 2024 funding strategy, where employee and investor liquidity was prioritized.
Who’s backing Rippling?
The round attracted both new and existing investors. New entrants include Sands Capital, GIC, Goldman Sachs Growth, and Baillie Gifford. Previous backers like Elad Gil and Y Combinator also returned, reaffirming their confidence in the company’s growth trajectory. Notably, Y Combinator, which incubated Rippling in its Winter 2017 batch, has now also become a customer.
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A YC favorite—and now a client
Y Combinator recently spotlighted Rippling as its preferred HR tool for founders, highlighting its appeal among early-stage startups. Rippling has responded with a tailored “Founder Mode” for YC companies, offering discounted services to help them scale more efficiently.
Startup Stack and market reach
The firm has also launched a “Startup Stack” campaign, offering six months of free service to new ventures. According to the company, over 15,000 startups—including Cursor (Anysphere), Clay, and Sierra—are already using its platform. Rippling now serves over 20,000 customers globally and has more than 4,000 employees.
Legal friction with Deel
The funding boost comes amid legal drama. The company recently filed a lawsuit against rival Deel, alleging it hired a former employee to obtain trade secrets. Deel, another Y Combinator alum, countersued in April, denying the allegations and filing claims of its own.
Expanding product suite and revenue growth
Founded in 2016, Rippling now offers two dozen products ranging from payroll and benefits to identity management and bill pay. The company recently reached $570 million in annualized revenue, according to sources cited by The Information.
The new funds will support product development, market expansion, and enhancing its current offering—cementing Rippling’s role as one of the most comprehensive platforms in HR and enterprise management software.
