Numerous tech businesses across the country were affected by Silicon Valley Bank’s collapse on March 10, causing companies to search for interim funding solutions while their capital was inaccessible. Many in this situation were customers of Rippling, a San Francisco-based HR tech company.
Rippling develops scalable workforce management software, offering tools for operations like employee payroll, benefits, devices, digital apps and corporate cards. When SVB crashed just before payday for 50,000 employees, Rippling was forced to find a quick way to ensure its customers’ team members got their paychecks on time.
Ultimately, the company decided to raise a hefty funding round while awaiting fund recovery from the Federal Deposit Insurance Corp. Still pinched for time after providing its customers with almost $130 million of its own capital, Rippling called on existing investor Greenoaks to help finance some of its customers’ $545 million that was held by SVB and thus inaccessible.
The result was a $500 million Series E raise at an $11.25 billion valuation. The round closed within three days, Rippling’s CEO Parker Conrad wrote in a company blog post.
Following the company’s Series D back in May 2022, this latest round brings Rippling’s total funding to $1.2 billion, according to Crunchbase. It also comes after recent triple-digit business growth for Rippling, according to the company.
“The round is at a good price that we believe reflects our performance, especially given the change in the fundraising backdrop over the last year,” Conrad wrote. “It lets us focus on our customers and build great products no matter what happens with the economy.”
After ensuring all due employees were paid by March 10 or 13, Rippling shifted its banking operations to JPMorgan Chase & Co. where it had previously set up backup payments infrastructure, Conrad wrote.
Since closing its Series E, Rippling said it has recovered all its funds from SVB and has about $1 billion in cash.
The growing company is actively expanding its internal team. Rippling currently lists numerous roles based in its San Francisco office spanning departments including marketing, engineering, sales and more.
