Small-business payroll and benefits platform Gusto raised $200 million Series D funding. Fidelity Management & Research Company and Generation Investment Management joined previous investors Dragoneer Investment Group, General Catalyst and investors advised by T. Rowe Price.
CEO Josh Reeves said the company as been “intentional” in working with investors who take a long-term view. “We’ll be building Gusto for decades, and our goal is to be a durable and sustainable business,” he said. “Fidelity and Generation share our belief that the best business model is to align the success of your customers with your own success.”After closing $200m Series D round, @GustoHQ says the company's been “intentional” in working with investors who take a long-term view. #HR #HRTech Click To Tweet
Describing Generation’s investment in Gusto as being based on “deep research into the future of compensation,” Shalini Rao, director of growth equity, said his firm believes Gusto’s platform “has the potential to balance the disparity in benefits access, and sets a new industry model for what total compensation can look like for employees at companies of all sizes.” He said Gusto represents “the model of business we look to support with our Sustainable Solutions Strategy–those accelerating the transition to a more sustainable economy.”
Gusto will use the funds to increase the pace of its R&D and expand its platform. It will also continue to grow its teams in Denver, San Francisco and New York.
Meanwhile, the company appointed its first independent director to its board. The director, Anne Raimondi, has more than 20 years of experience in both B2B and B2C SaaS technology. She was senior vice president of operations at Zendesk and has also held executive roles at Survey Monkey, Blue Nile and eBay. She’s currently on the board of project-management platform provider Asana.
Gusto provides payroll processing and benefits services to more than 100,000 small businesses in the U.S. It recently partnered with business management platform Accelo to allow joint customers to sync time-off requests from Gusto to Accelo’s scheduling and resource management module.
In August 2018, the company closed a $140 million Series C round. According to Crunchbase, Gusto has raised a total of $516 million to date.
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