Rippling, a cloud-based enterprise software company, is making a significant impact in the small and medium business sector. Founded in 2016, it has already reached a valuation of $11.25 billion, sparking interest in the company’s approach to investing.
Rippling addresses a unique combination of challenges, offering solutions for payroll, human resources (HR), and information technology (IT). Its HR software facilitates onboarding, training, and benefit management for new employees. Through its IT solutions, companies can set up devices and provide access to apps. Additionally, Rippling users can track work hours and process payroll efficiently.
While there are many enterprise software options, most only address one or two business needs. Rippling’s ability to handle all three has contributed to its rapid growth. The sleek, cloud-based software is manageable through a mobile app and includes automation features that save managers time. Rippling claims that new employees can be onboarded in just 90 seconds, demonstrating its speed and ease of use.
Additionally, Rippling integrates with major enterprise apps such as Slack from Salesforce, Zoom Video Communications, and Asana, allowing companies to add Rippling without disrupting their existing tools.
With this overview of Rippling’s business model, it’s clear why it’s an attractive investment opportunity.
Is Rippling publicly traded?
Rippling stock is not available for trading on major exchanges such as the New York Stock Exchange or Nasdaq because Rippling remains a privately held company until October 2023.
Private companies like Rippling typically go public through an initial public offering (IPO), where they offer shares to retail investors for the first time.
Rippling may decide to go public for a variety of reasons. Companies often go this route to raise capital for business expansion, increase brand awareness, offer exit strategies to private investors, and gain more liquidity options.
For now, non-accredited investors will have to wait to invest directly in Ripple stock.
When will Rippling IPO?
Rippling hasn’t made any announcements about going public through an IPO, so it’s not listed on the IPO calendar, and there’s no clear timeline for when it might happen.
Companies typically wait until they reach a sufficient size before going public because of the high costs associated with being a public entity, which can be burdensome for small businesses.
However, Rippling may already be big enough to consider going public for reasons that will soon become clear.
Startups like Rippling typically wait until they can demonstrate two key things: a predictable growth model that outperforms key competitors and a clear path to profitability. Without them, a company may struggle to achieve a successful IPO.
Market conditions also influence the decision to go public. If the public market is unwilling to invest in IPOs, as seen in 2022 and much of 2023, companies like Rippling may delay their plans until market sentiment improves.
Rippling Aggregate Buy and Sell Interest
The stock price and past performance, which are annualized for more than one year, are generated algorithmically using secondary trades and additional data input.
| Periods | Performances |
| 1 Day | 0.00% |
| 1 Week | 0.18% |
| 1 Month | 0.27% |
| 3 Months | 9.53% |
| YTD | 38.34% |
| 1 Year | 63.66% |
| 2 Years* | 18.77% |
| 5 Years* | 96.52% |
| All Time* | 88.77% |
Rippling Quarterly Performance
| Quarter | Stock Price | % Change |
| 2023 Q2 | 25.78 | – |
| 2023 Q3 | 24.95 | -3.24% |
| 2023 Q4 | 30.50 | +22.27% |
| 2024 Q1 | 37.50 | +22.94% |
Rippling Valuation History
| Year | Valuation | Market Cap | Premium |
| Valuation 2022 | $11.2B | $7B | -37% |
| Valuation 2023 | $11.2B | – | – |
| Valuation 2024 | $13.5B | $12.9B | -4% |
Rippling Funding Rounds
| Round | Date | Est. Valuation | Raise Amount | Price |
| Series F | 04/22/24 | $13.5B | $199.9M | – |
| Series E | 03/17/23 | $11.2B | $500M | – |
| Series D | 05/11/22 | $11.2B | $265.8M | – |
| Series C | 10/21/21 | $6.5B | $278.9M | – |
| Series B | 08/04/21 | $1.3B | $150.2M | – |
| Series A-4 | 07/27/20 | – | $11.8M | – |
| Series A | 04/03/19 | $270.0M | $53.1M | – |
How many investors invest in Rippling?
PeopleCenter attracted the interest of 9 investors, 6 of whom led 11 funding rounds. Coatue led the Series F round. Other prominent investors include Sequoia Capital, Founders Fund, Kleiner Perkins, and Greenoaks Capital.
Private Investors:
- Sequoia Capital: Remote, SmartHR, Wonolo, Bytedance (TikTok), SpaceX, OpenAI (ChatGPT), Ant Financial
- Y Combinator: Deel, Gusto, Checkr, Lattice, Pave, Fountain, Instawork, Ashby, Scale AI, Razorpay
- Coatue: Dell, Checker, Handshake, SpaceX, Databricks, Checkout.com, CoverView, and Swiggy.
- Founders Fund: Lattice, Workrise, Forage, SpaceX, OpenAI (ChatGPT), Stripe, Anduril, and Figma
- Kleiner Perkins: Gusto, Handshake, Stripe, Epic Games, Figma, X (Twitter), Toss, Applied Intuition
- Greenoaks Capital: Companies like Personio, Papaya Global, Databricks, Checkout.com, Canva, Wiz, Scale AI, and Starkware are leading players in their respective industries.
- Initialized Capital: Flock Safety, Papa, Envoy, Clipboard Health, Patreon, FrontApp, Ro (Roman Health)
- Threshold: Benepass, Talkdesk, Transparent, Viz.ai, LaunchDarkly, Upside Foods, Databook
- Bedrock Capital: Workrise, Homebase, Check, Argyle, Vercel, Flock Safety, Epirus, Cameo, Mach Industries
Investing in stocks
Investing directly in Rippling stocks can be difficult right now, but fortunately, investing in stocks is usually straightforward.
First, you will need a reliable brokerage account. Most brokerage accounts offer zero fees, no account minimums, and convenient online services. Fidelity is a popular choice among investors. While these features are essential, the deciding factor may be the user interface, which varies according to individual preferences.
After setting up a brokerage account, you’re all set to start buying stocks. However, it is very important to budget the investment first. There is no universal answer to how much you should invest, but it should always be within your financial means. Avoid investing on margin, and if you might need the money in the next five years, it’s best to keep it out of the stock market.
With a funded brokerage account, you can buy shares of any public company. Before investing, it is very important to do thorough research. For example, if Rippling were a public company, you might want to investigate customer retention metrics, revenue growth, profit margins, and insider ownership. This information helps determine if the company is a good investment.
Finally, once you’ve identified a promising stock, you’re ready to make a purchase. Online brokerages provide trading options where you can input whether you want to buy or sell, the ticker symbol, and the number of shares. For brokerages that allow partial share purchases, you can specify the amount of money you want to invest instead of the number of shares.
How to buy Rippling stock
Accredited investors have exclusive opportunities to invest in Rippling stock. For example, Forge Global (FRGE 2.82%) operates an exchange for private companies, accessible only to accredited investors for buying and selling shares. It allows investing in Rippling stocks and through other similar exchanges.
Another way is through a platform like EquityBee, which funds stock options. In this case, a Rippling employee seeking liquidity to compensate for their stock before the IPO could seek funding from accredited investors in exchange for future shares.
Is Rippling profitable?
Rippling’s profitability is difficult to determine because it has not been made public, limiting the availability of detailed financial information. We can get some understanding of how well the company is doing financially.
First, Rippling is experiencing rapid growth. A company blog post from March 2023 noted that Rippling is growing at a “triple-digit rate,” indicating that business is more than doubling annually, which is remarkable.
Second, Rippling works on a subscription-based model. A March 2023 Reuters article reported that the company had already surpassed $100 million in annual recurring revenue.
Third, Rippling is well-capitalized, with more than $1 billion in cash reserves. Software-as-a-service (SaaS) businesses like Rippling typically enjoy high gross profit margins, suggesting substantial gross profit margins. Additionally, with higher interest rates in 2023, Rippling should earn significant interest income from its cash reserves.
Despite these positive indicators, Rippling is likely not yet profitable on a net basis, which is common for enterprise software companies at this stage. Co-founder and CEO Parker Conrad emphasized that the company’s strong cash position allows it to “build great products no matter what happens with the economy,” saving interest income rather than investing heavily. Identifies projects.
Additionally, Rippling’s institutional investors are likely encouraging the company to spend aggressively to maintain its high growth rate rather than prioritizing short-term profits.
Should I invest in Rippling?
When a company goes public through an IPO, the registration documents provide useful information to help investors decide whether they should invest. However, sometimes important information is missing, making it difficult to determine investment potential.
Investing is a personal decision, and a high-growth software startup may not suit every investor. Investors should evaluate Rippling in terms of risk and reward. Research shows that many top-performing stocks are high-growth companies. Rippling, with its triple-digit growth rate and strong funding, could offer substantial rewards.
Rippling has demonstrated strong execution skills. In early 2023, when his bank failed, Rippling successfully processed over 50,000 payments despite his funds being temporarily inaccessible. The company quickly raised $500 million in 12 hours, ensuring timely payments. The incident highlighted rappelling’s resilience and ability to perform under pressure.
Investing in Rippling, while it has its strengths, also brings potential risks. The company’s high cost is a concern; Its $500 million funding round was valued at $11.25 billion, with annual revenue of $100 million. This valuation, at 100 times its previous sales, is high and may limit future growth.
Competition is another challenge for Rippling. Large, established companies may be more reliable through larger institutions. While Rippling offers a unique set of software services, larger players such as Automatic Data Processing (ADP) and Paylocity already provide similar services and can easily expand into new areas.
Finally, Rippling represents a high-risk investment. This does not necessarily mean that it will be a bad investment, but investors should ensure that it is in line with their risk tolerance and invest an amount that understands the potential downside.
ETFs with exposure to Rippling
Exchange-traded funds (ETFs) are ideal for investors who prefer to invest in broad themes rather than picking individual winners within those themes. By holding multiple stocks within a specific category, ETFs offer shareholders instant diversification.
Currently, there are no known ETFs linked directly or indirectly to Rippling. However, there are ETFs focusing on related investment themes.
One such theme is cloud-based software. Investors interested in Rippling’s concept may consider investing in the Global X Cloud Computing ETF (CLOU 0.61%). This ETF holds many enterprise software companies that, like Rippling, operate on a software-as-a-service (SaaS) model.
Alternatively, for investors to gravitate toward smaller companies rather than established companies, another possible theme is IPO stocks. The Renaissance IPO ETF (NYSE: IPO ) is a viable option, with holdings in several dynamic companies that have recently gone public. If Rippling goes public in the future, it may become part of the Renaissance IPO ETF’s portfolio.
Final Words on Rippling
Rippling is an exciting startup that is growing fast, operating well and is well funded for the future. Unfortunately, retail investors do not have good options for investing in the company today. But it needs to be watched, as it will probably go public in the not-too-distant future.
Investing in the Rippling of FAQs
Is Rippling publicly traded?
Ripling was not listed on the stock market until October 2023.
Who are the investors in Rippling?
Rippling recently closed its Series E funding round, marking another successful milestone in its fundraising journey. Throughout its history, Rippling has seen multiple funding rounds, attracting a diverse range of investors.
In this latest round, Greenoaks Capital Partners took the lead, cementing its leading role as an investor in Rippling. Previous rounds have also seen backing from notable firms like Sequoia Capital and Founders Fund.
What is the valuation of the Rippling IPO?
As of now, we don’t know how much Rippling could be worth in its IPO, as it has yet to file the necessary documents to go public.
How does Rippling make money?
Rippling earns its revenue by selling subscription software to businesses.
