Gusto

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.

Gusto has acquired a series of companies over the years, with its most recent being that of Remote Team (October 2021). Previously, the company acquired tax-software company Symmetry Software (July 2021), to build out its existing small business-focused software and Ardius (June 2021) to expand into automating its customers’ R&D tax credit compliance.

The company focuses on providing services for small businesses so that they can match the benefits that large companies are able to offer. Gusto’s monthly subscription pricing ranges from USD 6 and 9 per employee, with a base fee ranging from USD 40 to USD 60.

Key customers and partnerships

As of April 2024, the company served over 300,000 businesses in the US, processing ‘tens of billions’ of dollars in payroll and benefits.

In October 2021, the company partnered with client engagement platform Ignition to roll out its People Advisory Accelerator program, allowing clients to fast track proposal creation and billing. Other partnerships include that with Workiz (a home service management software company) and JazzHR (March 2021).

Funding and financials

The company’s latest funding round was in May 2022, where it raised ~USD 55 million in an extension round as part of its USD 175 million Series E round (announced in August 2021).

The round was led by T. Rowe Price Associates Inc and valued the company at USD 9.5 billion. External sources expected the company to utilize its funding to navigate adverse market conditions and gear up for a possible IPO in the future.