Gusto, an employee benefits platform, has raised $200m in a Series D round led by late-stage investor Fidelity Management & Research and sustainable investor Generation Investment Management.
Existing backers Dragoneer Investment Group, General Catalyst and investor advised by T. Rowe Price Associates, also contributed to the series.
The capital injection is being used to double down on its research and development as it looks to expand its platform to further help employees. These plans include the expansion of its teams in Denver, San Francisco, and New York.
Gusto helps small business owners and operators to onboard their employees, pay them, provide health insurance, and support their employees through a single solution.
The company claims to process tens of billions of dollars of payroll annually and empowers employees to offer benefits like health insurance, 401(k) retirement plans, and 529 college savings plans.
Gusto CEO and co-founder Josh Reeves said, “Fidelity and Generation share our belief that the best business model is to align the success of your customers with your own success. Currently, only 50 percent of small businesses in America make it past year five.
“This is unacceptable, and we’re here to change that. Gusto is committed to increasing the durability of small businesses everywhere by helping them build great places to work where their employees thrive.”
Alongside the close of the round, the company has named former Zendesk SVP of operations Anne Raimondi to its board of directors.
This investment comes a year after Gusto closed its Series C on $140m. The former round was backed by investors including T. Rowe Price Associates, MSD Capital, Dragoneer Investment Group and Y Combinator Continuity Fund, among others. The capital was raised to support the creation of new features.
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