Payroll company Gusto bags $140m for its Series C round

Gusto, an online payroll, benefits and HR technology platform, has picked up $140m in its Series C funding.

Late-stage investors including T. Rowe Price Associates, MSD Capital, Dragoneer Investment Group and Y Combinator Continuity Fund took part in the round. Some of Gusto’s existing backers also contributed, with General Catalyst, CapitalG, Kleiner Perkins, 137 Ventures, and Emergence Capital, among them.

Launched in 2012, the company helps SMBs process tens of billions of dollars of payroll and helps employers offer their staff benefits such as health insurance, 401 (k) retirement plans and 529 college saving plans. The US-based company serves over 60,000 companies across the US and has offices in San Francisco and Denver.

Gusto hopes to use the capital to introduce new capabilities to help employees manage when and how they get paid. Recently, the company launched its Flexible Pay solution, which lets enables employees to get paid whenever, regardless of an employer’s pay schedule.

Gusto co-founder and CEO Josh Reeves said, “We are thrilled to welcome these long-term investors to the Gusto community. They share our passion for creating a world where work empowers a better life.

“We chose these investors because they care about enabling small businesses with modern payroll, benefits and HR. There are millions of companies out there to help, and this is a long-term journey for us. We’re just getting started.”

Earlier in the year, Dragoneer took part in the $150m funding round of Brazilian digital bank Nubank. The company provides a mobile banking account, which enables them to send and receive money through transfers including QRs.

Fellow payroll company IRIS recently secured a round of funding from Hg Saturn Fund and Intermediate Capital Group, which valued the company at $1.3bn.

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