Gusto is an HR technology company valued at nearly $10 billion. The company raised an extension to its 2021-era Series E, with the new tranche appearing to be roughly $55 million alongside a secondary offering of unclear size. Gusto's 2021 Series E included $175 million in primary capital plus a tranche of secondary shares and a tender offer. The extension was executed at a flat valuation to the 2021 raise and was driven by strong investor demand, according to a source. Gusto also acquired Remote Team to support more international hiring. The company and observers say the added capital should help it weather the current market downturn and position it to pursue an IPO when conditions improve. Gusto is a San Francisco-based provider of an online people platform that helps small businesses manage payroll, health insurance, 401(k)s, expert HR, and team management tools. Led by CEO Josh Reeves, the company offers nearly 100 third-party integrations spanning expense management, time-tracking, banking, and workforce forecasting. Gusto recently acquired Symmetry, a leader in payroll infrastructure technology, and Ardius, an AI-powered R&D tax credit solution. It also introduced Gusto Embedded Payroll to enable software developers to embed and customize payroll directly into their software. The company raised $175M in a Series E and intends to use the funds to continue expanding operations and business reach. Gusto is adding two independent board members, Lori Dickerson Fouché and Vicki Fuller, to bolster oversight as it scales. Gusto offers a modern online people platform with full-service payroll, health insurance, 401(k)s, expert HR, employee self-onboarding, and team management tools. Launched in 2012, the company serves more than 100,000 small businesses across the U.S. and processes tens of billions of dollars of payroll annually. Gusto positions itself to increase the durability of small businesses by simplifying compensation and benefits access typically available only to larger employers. The company plans to double down on research and development to continue expanding its people platform. It is also continuing to grow its teams in Denver, San Francisco, and New York. Leadership emphasizes a long-term, sustainable business model aligned with customer success. Gusto is a payroll, benefits and HR technology platform serving small businesses. Launched in 2012 and based in San Francisco (with offices in Denver), the company processes tens of billions of dollars of payroll and serves over 60,000 companies—more than 1% of U.S. employers. Its platform enables payroll processing and offers benefits administration such as health insurance, 401(k) retirement plans and 529 college savings plans. The company plans to use the new funding to add significant capabilities to its all-in-one platform, including tools to help employees manage when and how they get paid. Gusto recently launched Flexible Pay, which lets employees choose their pay timing without affecting an employer’s payroll or cash flow. Leadership frames the expansion as moving beyond payroll to improve employee financial mobility and personal prosperity. Gusto, formerly ZenPayroll, started as a payroll service and has expanded into HR and benefits tools. The company rebranded in September as it broadened its product set and compete more directly with Zenefits. Gusto says it is processing several billion dollars in annual payroll and added more than 275 employees this year. CEO Joshua Reeves described the financing as “opportunistic.” In late November the company raised $50M at a $1B pre-money valuation and had more than $50M in the bank when it did the deal. Earlier in the year Gusto raised $60M in April at a $560M post-money valuation and has said it will continue expanding and growing headcount.

Total raised

$706M

Funding rounds

8

Latest round

Series E

Latest activity

May 2022