Gusto (formerly ZenPayroll) is a San Francisco cloud-based onboarding, HRIS, and payroll tool.
The cloud-based SaaS handled the payroll functions of adding employee hours, overtime pay, bonuses, reimbursements, garnishments, benefits, pay issuance via check or direct deposit, tax calculation, deduction and filing to federal and state governments and reported new employees to the state. As well, it offers a dashboard where employers can view pending tasks, upcoming dates, past payroll cycles, employees pay stubs and report vacation and sick days.
Employees also get access to a personal profile where they can change payment settings, access pay stubs and employment documents, manage personal and financial details, and review pay and benefits.
With their payroll service, Gusto offers healthcare and other insurance benefits, handled through their platform. And they offer to help manage 401(k) plans, 529 college savings, flexible spending accounts, health savings accounts, commuter benefits and life and disability.
Gusto launched Flexible Pay in 2018. This feature allows employees to receive income for work completed outside of a usual pay schedule.
Using data-analytics, Gusto is able to predict what a salary worker has earned and loans the money at what Gusto hopes is a lower risk. Through their platform, they keep employers books and paycheck distribution normalized. While the feature is a loan, Gusto expects to create a financial facility to underwrite Flexible Pay.
Gusto launched the beta for their HR Basics, a suite of tools for businesses to handle vacation time, employee directories and onboarding of new hires, in 2018.
Gusto graduated Y-Combinator Winter 2012 with $6.1 million raised, the largest in Y-Combinator history to that point. The round included Aaron Levie, David Sacks, Drew Houston, Jawed Karim, Jeremy Stoppelman, Kris Duggan, Larry Augustin, Tien Tzuo, Google Ventures, Data Collective, Sherpalo Ventures and Salesforce.com.
In February 2014, Gusto raised $20 million. General Catalyst Partners and Kleiner Perkins Caufield & Byers led the round, which included participation from Wayne Chang, Pivot Investment Partners, Obvious Ventures, Jeff Siebert, Designer Fund, Daniel Gross, AFSquare and #Angels.
Gusto raised $60 million in funding in April 2015. Google Capital (CapitalG) led the round with Google Ventures, Emergence Capital and Ribbit Capital, while Pivot Investment Partners, Kleiner Perkins Caufield & Byers, Glynn Capital Management, General Catalyst, Felicis Ventures and Designer Fund participated in the round.
The round valued Gusto at $560 million, up from $100 million the year before, and marked one of the first deals where Google Capital and Google Ventures invested in the same company.
Series B (part 2)
Gusto, which rebranded from Zenpayroll between their April 2015 Series B and their late November 2015 Series B, raised $50 million. Investors included Google Capital, General Catalyst, Obvious ventures, Slow Ventures, WME Ventures and Wayne Chang.
The funding came at a $1 billion pre-money valuation for Gusto.
Closed in July 2018, this funding round saw Gusto raise $140 million. T. Rowe Price Associates portfolio, MSD Capital, Dragoneer Investment Group and Y Combinator's Continuity Fund led the round which included General Catalyst, CapitalG, Kleiner Perkins, 137 Ventures and Emergence Capital.
Gusto announced a $200 million funding round in July 2019. Fidelity Management & Research Co. and Generation Investment Management led the round. Other participants included T. Rowe Price Associates Inc., Dragoneer Investment Group, and General Catalyst.
Gusto reached a $3.8 billion post-money valuation.