US-based human resources technology provider Gusto raised $140m in a series C round yesterday that included CapitalG, the investment arm of internet and technology conglomerate Alphabet formerly known as Google Capital.
MSD Capital, Dragoneer Investment Group, Y Combinator Continuity Fund, General Catalyst, Kleiner Perkins Caufield and Byers (KPCB), 137 Ventures, Emergence Capital and portfolios managed by T. Rowe Price Associates also invested in the round.
Founded in 2011 as ZenPayroll, Gusto has developed a cloud-based platform that enables companies to manage payroll and benefits such as health insurance and retirement plans from a single place.
Employees can also choose when to receive their wages without affecting the company’s cash flow. The funding will enable Gusto to add more features to its platform, including expanded functionality around employees’ ability to manage when and how they are paid.
The round valued Gusto at about $2bn according to Bloomberg. It has now raised $276m in total, having received $50m in series B-1 funding from CapitalG and General Catalyst at a $1bn valuation in December 2015.
CapitalG had led a $60m series B round for the company in April 2015, with participation from General Catalyst, Emergence Capital Partners, Ribbit Capital and KPCB.
General Catalyst and KPCB had supplied $20m in series A capital for Gusto in 2014, following a $6.1m seed round in 2012 backed by another Alphabet unit, GV, as well as enterprise software producer Salesforce and assorted angel investors.