Sequoia leads $250M round for employee management startup Rippling
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 breach does happen, Rippling provides tools that detect and block malware.
Lost devices are another risk for which Rippling helps companies prepare. The startup enables IT teams to encrypt work devices’ hard drives and, if needed, remotely delete the business data they contain.
Rippling’s one-stop-shop approach is gaining traction. The number of customers using the startup’s applications has more than doubled over the last year, according to TechCrunch, while annual recurring revenue increased by 270%, off an undisclosed base.
“Over time, we see a world where Rippling becomes the one-stop shop for both SMBs and larger organizations to manage their employees, applications and devices all in one place,” Sequoia Capital Partner Mike Vernal wrote in a blog post today.
Rippling has raised nearly $450 million in total funding to date.
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