Gusto raises $140 million to go after small business payroll and benefits with more gusto ~ The Tech News

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Tuesday, 31 July 2018

Gusto raises $140 million to go after small business payroll and benefits with more gusto

AppyBro11:50No comments

Gusto, which sells payroll, benefits and human resources management and monitoring services to small businesses, has raised $140 million in its latest round of funding.

The company said it will use the money to add new services to increase payment flexibility for employees. The company launched a new service called Flexible Pay, which gives employees a way to get paid no matter when a company’s pay schedule dictates. It seems sort of like a payday loan where a percentage of the salary is taken by Gusto for providing money upfront.

The late-stage round was led by T.Rowe Price Associates portfolio, MSD Capital (the family investment fund for Michael Dell), Dragoneer Investment Group, and Y Combinator’s Continuity Fund.

Previous investors including General Catalyst, CapitalG, Kleiner Perkins, 137 Ventures, Emergence Capital also participated in the round.

The company claims that it processes tens of billions of dollars in payroll and offers a range of benefits including health insurance, 401(k) plans, and college savings plans.

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