Sequoia Leads $250M Round for Employee Management Startup Rippling at $6.5B Valuation

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This article covers a funding round for Rippling, an HR/IT management platform. It has minimal direct relevance to AI safety, though it touches on enterprise software consolidation and cybersecurity practices relevant to organizational security posture.

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Summary

Rippling raised $250 million led by Sequoia Capital at a $6.5 billion valuation to expand its unified employee management platform. The platform consolidates HR and IT functions—including payroll, benefits, device management, and cybersecurity—into a single system of record. The company reported 270% ARR growth and doubled its customer base over the prior year.

Key Points

•Rippling raised $250M at a $6.5B valuation, led by Sequoia Capital's Global Equities and Global Growth fund.
•The platform unifies HR and IT management, including payroll, benefits, SSO, device management, and malware detection.
•Annual recurring revenue grew 270% year-over-year with customer count more than doubling.
•Rippling's core value proposition is a single system of record eliminating data duplication across disparate enterprise tools.
•Total funding raised reached nearly $450M as of October 2021.

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UPDATED 15:16 EDT / OCTOBER 21 2021 
 
 

 
 
 
 CLOUD 
 
 
 
 
 Sequoia leads $250M round for employee management startup Rippling 

 
 
 
 by 
 Maria Deutscher 
 
 

 
 
 
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 Rippling today announced that it has raised $250 million in funding at a $6.5 billion valuation to continue scaling up its employee management platform, which enables companies to streamline a variety of tasks ranging from worker training to device cybersecurity. 

 Sequoia Capital led the round through its Global Equities and Global Growth fund. The storied venture capital firm was joined by a number of existing investors including Greenoaks. 

 Companies typically use multiple applications, often from different software makers, to perform workforce management tasks. An organization might rely on one tool to manage employee benefits, a second to regulate staffers’ access to business applications and a third to secure their work computers. Many companies use an even larger number of products to support their operations.  

 Using disparate applications comes with certain challenges that can negatively impact productivity. Rippling, officially People Center Inc., is working to address those challenges.  

 One reason why having an array of disparate software products causes operational complexity is that there are many cases where multiple applications use the same data. As a result, employees have to copy data among different tools. Manually syncing information across applications not only takes time but can also lead to errors. 

 Rippling’s approach is to consolidate datasets in a single system of record so that they may be shared across multiple applications. The startup’s system of record powers more than 20 software-as-a-service applications that help human resource and  information technology teams manage their day-to-day work.  

 For human resources teams, Rippling provides applications that automate key tasks such as payroll administration, enrolling employees in health insurance and providing benefits. The startup says its software makes it possible to complete certain chores that usually take hours to be completes in as little as a few minutes. 

 Alongside its HR applications, Rippling provides a collection of applications designed to ease IT teams’ work.  

 A company’s IT team can use Rippling to manage which employee has access to what work applications. A single-sign-on feature enables employees to log into multiple services using the same set of login credentials. For added convenience, Rippling provides a tool that can automatically generate strong passwords and also provides autofill features. 

 Administrators can use the startup’s platform to manage not only applications but also employees’ work devices. Rippling enables IT teams to ensure that operating system updates and cybersecurity patches are downloaded onto work devices, which helps reduce the risk of a software vulnerability leading to a breach. In case a

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