Chhavideep Singh
Source: Soma Capital
Deel is a San Francisco-based payroll and compliance platform that hires international contractors and employees. It is basically is an international remote hiring start-up that has recently announced to have raised USD 156 million worth of funding in its latest Series C financing round co-led by multiple investors including Y Combinator Continuity Fund, Andreessen Horowitz and Spark Capital.
As mentioned in a report by TechCrunch, this funding is notable for the company because it highlights the massive growth percentage registered since 2020. The company claims to have witnessed a 20x growth in its revenues since 2020. The pandemic was a major turning point for businesses around the world, while some were positive and others went downhill. Deel, being a remote hiring company had a major growth phase since 2020 because the demand for remote work exceeded more than ever and the company mentions that this phase is not ending anytime soon.
Another reason for this funding round to be special is because it comes right after the company bagged USD 30 million in its Series B financing round that concluded in September last year. This means that the company’s Series C funding worth USD 156 million came just within seven months that is itself 5x the size of the round.
Founded back in 2018 by Alex Bouaziz, Shuo Wang and Ofer Simon, Deel has crossed its $1 billion valuation mark in just three years being into business with its Series C round concluding at a post-money valuation of USD 1.25 billion. The remote hiring start-up from San Francisco is now a member of the prestigious Unicorn Club as well.
Coming back to the funding, existing investors including Spark Capital, Lachy Groom, Jeffrey Wilke, Dara Khosrowshahi- Uber CEO and Anthony Schiller also participated in the company’s latest financing round.
The COVID-19 pandemic has brought some major unfortunate situations for the world businesses and those who have survived were either dependent on digital assets for their sales or not entirely dependent on brick-and-mortar businesses. However, Deel offers compliance tools and provides payroll among other services to help businesses hire employees remotely and in the wake of the demand during the COVID-19 pandemic has been phenomenal with 20 times revenue jump. The company notes to have been stagnant with 500 clients in September last year and has now grown to have more than 1,800 business clients.
While the vaccination drive has begun and offices are slowly reopening, there is a major section of the industry that still prefers to hire remotely and continue with their remote work. Remote hiring start-up, Deel is on a successful journey and will continue to grow for a long time, says analysts.