California-based HR automation platform, Zenefits has announced that it has raised a $500 million series C round of funding at a post-money valuation of $4.5 billion led by Fidelity and TPG. Other investors who participated in the round include Insight Venture Partners, Founders Fund, Khosla Ventures, Palm Drive Ventures, and Ashton Kutcher’s and Guy Oseary’s Sound Ventures.
Previous investors Andreessen Horowitz, Institutional Venture Partners (IVP), and Jared Leto also participated in this round. Additionally, this is A16Z’s largest investment till date.
The new round of funding will enable Zenefits to build up its sales and marketing teams to help the company reach the approximately 5 million small businesses in US with under 1,000 employees.
In 2014, the company had received $66.5 million series B round in June, and $15 million series A funding in January. Prior to that, Zenefits raised $2.1 million in seed round in July 2013. Including this round, it has secured a total capital of $583.6 million in 4 rounds from 25 investors.
The company offers a cloud-based software-as-a-service human resources platform for small businesses to manage their HR administrative work: compliance, on-boarding, payroll updates, health insurance, and other employee benefits.
Zenefits was co-founded by Parker Conrad and Laks Srini, it’s on track to hit the annual recurring revenue (ARR) of $100 million by January 2016 and hit $20 million ARR in January this year.