Rippling Hits $16.8B Valuation After $450M Raise, Delays IPO Amid Market Conditions

HR software startup Rippling has reached a $16.8 billion valuation following a $450 million funding round, a jump from its $13.5 billion valuation just one year ago. The company also plans to repurchase $200 million worth of shares from current and former employees, further signaling confidence in its long-term trajectory.

The round had no designated lead investor, though it included participation from Baillie Gifford, Elad Gil, and Goldman Sachs Growth, among others.

Despite the fresh capital, Rippling has no immediate plans to go public. The tech IPO market remains sluggish, with macroeconomic uncertainty, lingering inflation, and recently announced tariffs contributing to delayed offerings across the sector. According to co-founder and CEO Parker Conrad, current public market expectations—favoring profitability over hypergrowth—don’t align with Rippling’s expansion strategy.

“It does look a lot like, in order to be successful in the public markets, your growth rates have to come down so that you can be profitable,” Conrad said, adding that the company has not undergone layoffs. “For us, that sort of pushes things out until the company looks profitable—and probably slower-growing.”

Rippling is still growing at an annual rate above 30%, though updated revenue figures weren’t disclosed. As of the end of 2023, the company had reportedly more than doubled its annual recurring revenue to over $350 million.

The company’s all-in-one platform spans payroll, IT device management, and corporate credit cards, positioning it against incumbents like ADP, Paychex, Paycom, and Paylocity. It also faces competition from fast-growing startups such as Deel, which Rippling sued in March for allegedly planting an insider to gather proprietary information. Conrad suggested the legal dispute may be drawing more business interest.

“Some companies have said, ‘Hey, we’re talking to Rippling because of this,’” he noted.

While Rippling isn’t focused on near-term profitability, the new funding and share buyback program underscore its momentum—and its preference to remain private until market conditions shift.

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