(Bloomberg) -- Zenefits, a provider of human-resource tools and services, raised $500 million in funds at a valuation of $4.5 billion as more companies seek ways to streamline their employee benefit programs.
The round, led by Fidelity Management & Research Co. and TPG, is the largest financing for a software-as-a-service business since 2012, the San Francisco-based company said in a statement Wednesday.
Zenefits provides free online software that companies use to manage benefits for their staff, including payroll, retirement accounts and health insurance. Insurers pay Zenefits to offer their services, and the startup has signed up more than 10,000 small-and medium-sized customers in the United States. The startup needs new financing to hire more staff and speed up the pace of growth, co-founder and Chief Executive Officer Parker Conrad said.
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