Gusto secures $175m in highly subscribed Series E

Employee benefits business Gusto has reeled in $175m from a Series E funding round led by T. Rowe Price Associates.

Also taking part in the capital raise were Sands Capital, Fidelity Management and Research Company, Durable Capital Partners, Generation Investment Management, Glynn Capital, Emerson Collective, Friends & Family Capital, 137 Ventures, Cross Creek, Emergence Capital, Dragoneer Investment Group, Franklin Templeton and General Catalyst amongst others.

Established in 2011, San Francisco-based Gusto markets a platform that seeks to help small businesses take care of payroll, benefits, human relations, team management tools and health insurance. The company – which claims to serve over 100,000 businesses – also has offices in Denver and New York.

According to Gusto, it intends to use the newly raised funds to continue to expand its operations and business reach.

This investment comes two years after the company’s last funding round when it raised $200m in its Series D. In 2018, the business bagged $140m in Series C funding.

In addition to the recent round, Gusto revealed it is planning to add two new members to its board of directors later this year – Lori Dickerson Fouché and Vicki Fuller.

Fouché has had a multi-decade career in insurance banking and financial services and currently sits on the board of Hippo Holdings and The Kraft Heinz Company. Fuller, meanwhile, holds wide-ranging experience in financial services and was previously the CIO of the New York State Common Retirement Fund. She currently sits on the board of The Williams Companies.

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