HR tech unicorn Rippling has announced a massive $450 million Series G funding round, bringing its valuation to $16.8 billion. Despite speculation about a potential public listing, the company has clarified that it has no immediate IPO plans. Instead, Rippling is focusing on internal growth and employee satisfaction by initiating a $200 million tender offer to provide liquidity for current and former employees.
Empowering Employees Through Tender Offers
As private companies delay IPOs in the current market landscape, tender offers have become a strategic tool for liquidity. Rippling’s $200 million tender offer allows employees to sell vested shares at a set price without waiting for a public exit. This not only rewards early contributors but also helps the company maintain a clean cap table by addressing equity held by former staff.
Tender offers can also improve retention by enabling long-term employees to unlock the value of their equity while staying committed to the company’s future. However, participants should consider tax implications, as gains from stock sales may be taxed as capital gains or ordinary income depending on the type of equity and holding period.
Rapid Growth Since Founding in 2016
Founded by Parker Conrad and Prasanna Sankar in 2016 after Conrad’s high-profile departure from Zenefits, Rippling has evolved into a dominant player in workforce management software. The company, which began as part of Y Combinator’s winter 2017 batch, now operates out of San Francisco and Bengaluru.
Rippling’s revenue has seen explosive growth:
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$16.8 million in 2020
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$104.4 million in 2021
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$169.4 million in 2022
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$350 million by end of 2023
With a customer base exceeding 20,000 businesses, and a team of over 4,000 employees, Rippling has now raised a total of approximately $1.85 billion across multiple funding rounds.
A Flagship Y Combinator Success Story
Rippling has cemented its reputation as one of Y Combinator’s most successful alumni. In fact, Y Combinator itself adopted Rippling as its official HR platform in early 2025, recommending it to its portfolio founders. The startup also offers tailored solutions for fellow YC-backed companies through a “Founder Mode” pricing plan, extending its influence within the startup ecosystem.
What’s Next for Rippling?
While many tech companies chase public listings, Rippling is doubling down on product innovation, employee-centric policies, and strategic expansion. The decision to hold off on an IPO reflects a broader trend among high-growth tech startups: focusing on sustainable scaling and employee value realization over public market pressures.