Rippling, a California-based FinTech that helps firms manage their finances and operations, has scored $500m in Series E funding.
The company went to market for fresh capital after Silicon Valley Bank – its primary banking partner – collapsed in March, according to FinTech Intel.
The round was led by venture capital firm Greenoaks. Following the raise, Rippling are now valued at $11.25bn.
The Federal Deposit Insurance Corporation recently closed SVB and froze its assets – which including the payroll funds of customers of Rippling, meaning 50,000 workers may not have received their paychecks.
Due to this, Rippling decided to extend $130m of its capital to fund its customers’ payments to their employees.
The company previously established accounts with JP Morgan Chase, as a redundant payments infrastructure, enabling some employees to get their payments. However, with $545m still locked up at SVB, the firm decided a fundraise was the best choice to get capital.
Rippling CEO Parker Conrad said, “First, I believe strongly in handshake deals, and didn’t want to break my commitment. Second, 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.
“It lets us focus on our customers and build great products no matter what happens with the economy.”
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