Rippling is reportedly in discussions to raise $870 million at a valuation of $13.4 billion.
This round would include a $200 million injection of capital and $670 million of shares being sold by existing stockholders, TechCrunch reported Tuesday (April 16), citing unnamed sources.
Reached by PYMNTS, Rippling declined to comment on the report.
This funding would be the human resources tech company’s Series F round and would add to the total of $1.2 billion Rippling has raised prior to this round, according to the report.
The round is being led by an existing investor and has participation from at least two other existing investors, the report said.
This report comes about a year after Rippling raised $500 million in Series E financing. The company was valued at $11.25 billion after that round, which was about the same as its Series D financing in May 2022, the company said in a March 17, 2023, blog post.
Rippling raised its Series E financing at a time when its primary banking partner, Silicon Valley Bank (SVB), had just collapsed and entered receivership under the Federal Deposit Insurance Corp. (FDIC), according to the post.
The company’s customers’ funds at that bank were caught up in the freezing of SVB’s assets at a time when those customers had to make payroll. Rippling extended its own capital to fund its customers’ payments to employees, hoping to recover funds from the FDIC, the post said.
Rippling closed the funding round in less than three days. Shortly after, the FDIC said it would guarantee deposits. Still, the company moved forward with the financing, because it wanted to stick to the handshake deal it had made and because the price was good and reflected its performance, per the post.
“This extraordinary financing would not have been possible but for the fact that Rippling’s business is strong and growing at triple-digit rates,” Rippling CEO Parker Conrad said in the blog post. “We have a base of investors who are staunch supporters of the company and always looking for opportunities to increase their ownership.”
