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Rippling raises $450M at a $16.8B valuation, reveals YC is a customer
Rippling, an HR tech startup, has secured $450 million in Series G funding, boosting its valuation to $16.8 billion. The company, which claims Y Combinator as a client, aims to expand its offerings and market presence. This funding round follows a strong year of revenue growth and a lawsuit against rival Deel, amid a backdrop of rising competition in HR tech.
Key points
- Rippling raised $450 million in Series G funding at a $16.8 billion valuation, a significant increase from the previous year's $13.4 billion.
- The funding includes a $200 million tender offer for employee liquidity.
- New investors include Sands Capital, GIC, Goldman Sachs Growth, and Baillie Gifford, alongside existing investors like Elad Gil and Y Combinator.
- Rippling reported rapid growth with over 20,000 customers and reached $570 million in annualized revenue.
- The company recently initiated suit against rival Deel, alleging unfair competitive practices.
Why it matters
- 2025 IT trends indicate an increased focus on HR tech solutions, reflecting a market that values streamlined employee management.
- The rise of remote work and startups has boosted demand for HR solutions, leading to significant investments in the sector.
- Y Combinator's backing of Rippling showcases the accelerator's commitment to supporting innovative tech companies in a competitive landscape.
With this funding boost, Rippling aims to enhance its product offerings and expand further, capitalizing on the burgeoning demand for integrated HR solutions in a rapidly evolving tech environment.