Zenefits, a San Francisco, CA-based provider of a cloud HR automation platform, raised $500m Series C round of funding.
The round, which brought the company’s post-money valuation to $4.5 billion, was led by Fidelity Management and Research Company and TPG with participation from Insight Venture Partners, Founders Fund, Khosla Ventures, and Ashton Kutcher’s and Guy Oseary’s Sound Ventures and previous investors Andreessen Horowitz, Institutional Venture Partners (IVP), and Jared Leto.
The company intends to use the funds to continue rolling out new products and features, build up its sales and marketing teams and scale its account staff.
Co-founded by Parker Conrad and Laks Srini, Zenefits provides a free, cloud HR automation platform for small-and medium-sized businesses to manage business and employees. It connects with payroll, benefits, and other HR systems and allow users to manage all their HR online in one dashboard including checking compliance boxes, updating payroll, on-boarding new hires, enrolling in health insurance, administering stock options, and instant checking background on prospective employees.
It is used by more than 10,000 small-and medium-sized businesses in 48 states across nearly every industry including education, tech, health care, non-profits, financial services, and professional services.