Manage and automate all of your HR systems—online, in one place—for free is the tagline for Zenefits, a San Francisco based company founded by Parker Conrad and Laks Srini in May 2013. And within a short span of two years the company has raised multiple rounds of funding totaling $581 million that includes the new round of funding it announced today.
Zenefits announced it has raised $500 million in its Series C round of funding. And the post-money valuation for Zeneifts is $4.5 billion. Fidelity Research and Management company and TPG lead the latest round of investments that included Insight Venture Partners, Founders Fund, Khosla Ventures, and Ashton Kutcher’s and Guy Oseary’s Sound Ventures. Other previous investors include Andreessen Horowitz and Institutional Venture Partners (IVP). And here is a surprise – actor and musician Jared Leto, who was introduced to Zenefits by Aaron Levie of Box. Leto invested in Series B round of funding.
So, what exactly does Zenefits do? It is a free, cloud-based HR automation platform that automates all the paperwork related to Human Resources (HR) work. This includes the whole nine yards from compliance to payroll, health insurance and other associated employee benefits. The company has over 10,000 small and medium scale clients in different verticals across the USA. Managing HR related paperwork is one of the central challenges for many small and medium sized companies. And Zenefits with its “unusual business model is upsetting the brokerage industry, frustrating regulators and giving investors a reason to bet big,” writes the Wall Street Journal.
Since its founding 2 years ago Zenefits has become one of the fastest growing software companies according to various media reports. The company’s valuation has grown 9-fold in less than a year and it is hiring 150 people per month reports Fortune. With this new round of funding you can expect to see the company ramp up its operations across the USA.