08 May Zenefits Valued at $4,5B After Raising $500M
Human resources and benefits platform Zenefits announced on Wednesday that it had raised $500M. This is a big boost to US enterprise technology as Zenefits is now valued at $4,5B. The company is only 2 years old.
Zenefits offers free software as a service (SaaS) for human resources functions like onboarding, payroll, benefits, and vacation tracking to businesses with fewer than 1,000 employees. It makes its money on broker fees when users of the software choose to buy insurance and other HR services from it. The company is one of the fastest-growing SaaS businesses ever.
SaaS companies such as Salesforce.com and Workday have been among the enterprise tech world’s biggest stock market successes. The funding round of Zenefits is the largest SaaS fund-raising, public or private, since Workday’s IPO in 2012. At the time the IPO of Workday was valued at $637M and Workday’s market capitalization was about $4,5B. (Workday is now worth $17B.) The success of Zenefits is remarkable because usually it takes years to build a company like that. Zenefits did it in only 2 years.
Read more on uk.businessinsider.com
