Rippling, an HR startup has raised $500 million in its new funding round for helping users to process payroll easily after the collapse of Silicon Valley Bank. This round was led by Greenoaks Capital giving Rippling the same amount as the previous capital rise and putting it at $11.25 billion.
After knowing about client’s payroll funds got stuck at SVB last Friday. Rippling CEO, Parker Conrad, decided to take $130 million through Greenoaks Capital. This decision was taken to ensure the client’s payroll gets processed timely.
This fundraising that took place within 24 hours has emphasized how the tech startups faced issues due to the surprised collapse of Silicon Valley Bank.
Parker Conrad said on this funding, “We were intending to raise money either later this year or early next year. We pulled it forward about a year and it’s going to buy down any risk that we have around what happens with SVB on Monday. It’s a small amount of dilution for the company,”.
In the Sunday afternoon, U.S. Federal Deposit Insurance Corporation stated all the depositors can access their money. However, Rippling decided to go forward with the funding and providing the company with $1 billion cash. Conrad also stated that it has no plan to move the company to public listing. Further Rippling has also changed its banking partner from Silicon Valley Bank to JPMorgan Chase (JPM.N)