Gusto, Inc.
| Company type | Private |
|---|---|
| Industry | Software, Human resource management, Payroll |
| Predecessor | ZenPayroll |
| Founded | 2011 |
| Founder | Joshua Reeves, Tomer London, Edward Kim |
| Headquarters | San Francisco , United States |
Area served | United States |
Key people | Joshua Reeves (CEO) |
| Products | Payroll processing, benefits administration, human resource management software |
| Website | gusto |
Gusto, Inc. specializes in creating software solutions for payroll, benefits administration, and human resource management tailored to businesses operating within the United States.
History
Originally established as ZenPayroll in 2011, the company joined Y Combinator's Winter 2012 cohort and secured $6.1 million in funding from notable investors, including Aaron Levie, CEO of Box, and David O. Sacks, CEO of Yammer. The official launch took place in California in December 2012, with founders Joshua Reeves, Tomer London, and Edward Kim at the helm.
By the middle of 2013, ZenPayroll had enhanced its platform to support payments to contract workers while incorporating tax compliance capabilities. The company announced plans to expand services into Florida, Texas, and New York. By August of that year, it was managing payroll exceeding $100 million annually and had extended its operations to include Florida, Texas, and Washington.
In September 2014, ZenPayroll rolled out an API and established collaborations with more than a dozen small and medium-sized business back-office service providers. Later that year, it introduced features for employer-matched charitable contributions and attained a valuation surpassing $100 million. The platform was also recognized as one of the leading back-office software options for small businesses.
The year 2015 saw ZenPayroll opening an office in Denver and rebranding itself as Gusto. This rebranding accompanied an expansion of its offerings to incorporate health benefits and workers' compensation integrations. By December 2015, Gusto had raised $50 million in funding, reaching a valuation of $1 billion.
In October 2016, the company implemented price increases across its client base. By July 2019, Gusto secured $200 million in investment at a valuation of $3.8 billion and inaugurated a New York City office aimed at enhancing research and development activities.
As of 2023, Gusto's valuation climbed to $9.6 billion with annual revenues of $500 million and total capital raised exceeding $746 million. Its comprehensive product lineup includes payroll processing systems, employee onboarding solutions (such as work authorization and direct deposit documentation), and management of health, dental, and vision insurance enrollment. Additionally, Gusto provides access to third-party benefits like 401(k) programs and workers' compensation insurance.