Gusto, a US-based workforce management software provider backed by corporates Alphabet and Salesforce, completed a $175m series E round yesterday featuring financial services and investment group Fidelity Management and Research Company.
Investment manager T Rowe Price Associates led the round, which valued the company at $9.5bn according to Forbes.
Acrew Diversify Capital Fund, 137 Ventures, Cross Creek, Dragoneer Investment Group, Durable Capital Partners and Emergence Capital also participated, as did Emerson Collective, Franklin Templeton, Friends & Family Capital, General Catalyst, Generation Investment Management, Glynn Capital and Sands Capital.
Founded in 2011 as ZenPayroll, Gusto provides a human resources platform that helps small business owners handle team management, payroll, tax and employee benefits.
Fidelity had led the company’s $200m series D round in mid-2019, investing alongside Generation Investment Management, Dragoneer Investment Group, General Catalyst and funds advised by T Rowe Price. It reportedly valued Gusto at $3.8bn.
Internet technology group Alphabet’s CapitalG unit had contributed to a $140m series C round the previous year at a $2bn valuation. MSD Capital, Dragoneer, Y Combinator Continuity Fund, General Catalyst, Kleiner Perkins Caufield and Byers (KPCB), 137 Ventures, Emergence Capital and funds advised by T Rowe Price filled out the participants.
CapitalG and General Catalyst had provided $50m for the company in a series B-1 round in 2015, following a $60m series B earlier the same year led by CapitalG and backed by General Catalyst, Emergence Capital, Ribbit Capital and KPCB.
General Catalyst and KPCB had participated in Gusto’s $20m series A round in 2014, after a $6.1m seed capital two years before featuring Alphabet’s GV vehicle, enterprise software producer Salesforce and various angel investors.
Image courtesy of Gusto.
