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Gusto

Remote Work Infrastructure
Health Benefits Platforms
Segments:
Integrated HRM, Payroll, and Benefits Platforms, EoR/ PEOs
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Product stage:
Growth
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Gusto (formerly known as ZenPayroll) is a cloud-based, all-in-one platform provider of payroll, benefits, time tracking, team management, and compliance services. Gusto has a history of continuously developing its platform outside of its core payroll function. The platform launched benefits in 2015 and added time tracking, payroll integration with accounting software, and HR and compliance management in 2018. It offers a digital wallet (launched in September 2020) that acts as a mini-bank for employees receiving their paychecks through Gusto.

The platform also provides benefits such as health insurance and 401(k) retirement plans and makes parts of its service available via an API dubbed ‘Gusto Embedded Payroll’ (June 2021). This allows Gusto to offer its services through SaaS vertical companies that want to provide payroll support to their customers. The company rebranded as Gusto in 2015 and currently has offices in San Francisco, Denver, and New York.

The company focuses on providing services for small businesses so that they can match the benefits that large companies are able to offer. As of May 2022, the platform serves more than 200,000 businesses across the US. Gusto’s subscription pricing ranges between USD 6 and USD 12 per month, per employee, with a base fee ranging from USD 39 to USD 149 per month. 

Gusto announced that it will be acquiring Ardius, a company that automates tax compliance specifically for tax credits related to research and development, in June 2021. This marks Gusto’s first acquisition and it intends to expand into automating its customers’ R&D tax credit compliance. This was followed by the acquisition of payroll API and tax withholding software provider Symmetry Software in July 2021 and remote hiring start-up Remote Team in October 2021. 

Key customers and partnerships

Gusto revealed that Square, a digital payment solutions provider, is one of its early partners. Gusto’s recent partnerships include Workiz (a home service management software company) and JazzHR (March 2021).

Funding and financials

Gusto raised USD 175 million in a Series E funding round led by T. Rowe Price Associates Inc., valuing the company at USD 9.5 billion in August 2021 . The fresh funds are expected to be funneled toward the development of benefits and payroll tools. Gusto revealed that its revenue has grown at 50% year-over-year and that it intends to prepare for an initial public offering in 2022. In anticipation of this move, Gusto plans to add two new independent members to its board in September; namely, Lori Dickerson, former TIAA Financial Solutions CEO, and Vicki Fuller, a former chief investment officer of the New York State Common Retirement Fund and Fidelity Investments board member. 

In May 2022 , Gusto raised an additional ~USD 55 million in an extension round as part of its USD 175 million Series E round. External sources expected the company to use the fresh funding to navigate the adverse market conditions for tech companies at the time and highlighted the possibility that the company could go public once the IPO window opens.

Remote Work Infrastructure

Remote Work Infrastructure

Key stats
Featured companies
192
Total funding (USD)
16.5 Bn
Total addressable market (USD)
16.9 Bn
Key competitors
 
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Product Overview
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Company profile
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EDGE Insights

Breaking the one-size-fits-all mold: Navigating health benefit platforms
Oyster teardown: The future of work is distributed
Gaining an edge with the Cloud 100

Recent Updates

Funding
May 12, 2022
Gusto raises ~USD 55 million in a Series E extension round
Remote Work Infrastructure
Product updates
M&A
Oct 26, 2021
Gusto acquires Remote Team; announces new features
Remote Work Infrastructure
Funding
Aug 9, 2021
Gusto raises USD 175 million in a Series E round; reveals plans for an IPO in 2022
Remote Work Infrastructure

Company Brief


HQ location:
525 20th Street San Francisco CA USA
Founded year:
2011
Employees:
1,001-5,000
Total Funding:
USD 746.1 million

Funding


Investors


No investor data is available

Funding data are powered by Crunchbase
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