Deel (company)

Last updated
Deel
Company type Private
Founded2019;5 years ago (2019)
Founder
  • Alex Bouaziz (CEO)
  • Shuo Wang (CRO)
  • Dan Westgarth (COO)
Headquarters San Francisco
Products Professional employer organization services and payroll services
Revenue$500m [1]  (2024)
Number of employees
3,000 [2]  (2024)
Website deel.com

Deel is an American payroll and compliance provider based in San Francisco, California. [3] [4] The company provides hiring and payments services for companies hiring international employees and contractors. [3]

Contents

History

Deel was founded in 2019 by Alex Bouaziz, Shuo Wang, and Ofer Simon. [5] [6] Bouaziz and Wang met while studying at MIT in 2013. [7] The founders launched Deel after encountering difficulty hiring international workers for their previous ventures. [7]

Deel launched after entering the Y Combinator startup accelerator in 2019. [8] The company then raised several rounds of funding. In May 2020, venture capital firm Andreessen Horowitz led a $14 million Series A round. [9] In September 2020, the company raised a $48 million Series B. [10] In April 2021, Deel raised $156 million in a Series C round, becoming a unicorn. [11] In October 2021, Deel raised $425 million in a Series D. [12] They also raised $50 million in May 2022, valuing the company at $12 billion. [13]

As Deel expanded, Forbes reported "a five-person “Navy SEAL” team" went from country to country to quickly incorporate new local business entities. [5] It also began to make acquisitions. By 2023 it had acquired several companies providing HR platforms such as Zeitgold, Roots, PayGroup, and Capbase. [14] [15] [16] [17] [18]

In January 2023, it reported having 2,000 employees. [13]

In March 2023, former workers claimed they were miscategorized. [19] [20] In June 2023, California state senator Steve Padilla sent a formal request to the California Labor and Workforce Development Agency asking them to investigate the allegations. [21] [22]

In March 2024, Deel announced its acquisition of Zavvy, a 'people development' startup based in Munich, Germany, as well as PaySpace, an African-based payroll engine. [23] The company reported it had reached a milestone of $500 million in annual recurring revenue [24] and a headcount of 3,000. [25]

Products

The company offers a platform for companies to hire remote workers. [3] [14] Deel hires employees through their own local entity on a company's behalf, acting as the employer of record [26] and managing compliance with employment laws in each country. [7] As of August 2021, it owned 45 entities. [14] As of 2023, Deel operates in more than 150 countries. The company processes international payrolls, allowing withdrawals in different currencies. [27]

Deel also assists with creating contracts that comply with local labor laws using templates. [10] [27] It also helps workers access health insurance [3] [10] and provides immigration advice about visa processes to companies with digital nomads. [28]

See also

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References

  1. ↑ "Deel acquires Africa's PaySpace, says it's crossed $500M in ARR". Techcrunch. 2024-03-05. Retrieved 2024-03-30.
  2. ↑ "Deel Careers | Deel".
  3. 1 2 3 4 Son, Hugh (2020-05-21). "Remote work start-up Deel scores $14 million investment led by Andreessen Horowitz". CNBC. Retrieved 2021-10-17.
  4. ↑ "Deel Raises $156M at $1.2B Valuation to Expand Its Global HR Software Solution | Built In San Francisco". www.builtinsf.com. Retrieved 2021-10-17.
  5. 1 2 Cai, Kenrick. "$12 Billion HR Startup Deel Changed Global Hiring. Now It Wants To Change Regulators' Minds". Forbes. Retrieved 2024-05-07.
  6. ↑ Team, TechRound (2021-11-24). "3. Deel". TechRound. Retrieved 2023-08-04.
  7. 1 2 3 Stoller, Kristin. "Future Of Work—The New HR Frontier: These Tech Startups Are Helping Businesses Adapt To A Remote World". Forbes. Retrieved 2021-10-18.
  8. ↑ "Deel: Payroll for remote teams". Y Combinator. Retrieved 2021-10-17.
  9. ↑ "Meet the startups helping other startups go remote". Protocol — The people, power and politics of tech. 2020-06-04. Retrieved 2021-10-17.
  10. 1 2 3 "Deel nabs $30M more for payroll, compliance and other tools to run global workforces". TechCrunch. 9 September 2020. Retrieved 2021-10-17.
  11. ↑ Azevedo, Mary Ann (2021-04-21). "Remote hiring startup Deel raises $156M at a $1.25B valuation after 20x growth in 2020". TechCrunch. Retrieved 2023-08-04.
  12. ↑ Azevedo, Mary Ann (2021-10-18). "With customers like Coinbase and Shopify, remote hiring startup Deel raises $425M at a $5.5B valuation". TechCrunch. Retrieved 2023-08-04.
  13. 1 2 Cai, Kenrick. "HR Company Deel, Now Valued At $12 Billion, Nears $300 Million Of Revenue". Forbes. Retrieved 2023-03-07.
  14. 1 2 3 Kokalitcheva, Kia (2021-08-03). "Don't call it "outsourcing": Hiring employees globally is getting easier". Axios . Retrieved 2021-10-17.
  15. ↑ "Done: Deel welcomes new acquisition ZeitGold". Geektime. 2021-08-04. Retrieved 2021-10-17.
  16. ↑ Burroughs, Callum. "Coatue-backed HR startup Deel just made its first acquisition since the New York hedge fund invested in the company at a $5.5 billion valuation". Business Insider. Retrieved 2023-08-04.
  17. ↑ "HR Company Deel Completes PayGroup Acquisition". www.businesswire.com. 2022-11-21. Retrieved 2023-07-30.
  18. ↑ Azevedo, Mary Ann (2023-01-11). "Deel enters equity management space with acquisition of Capbase". TechCrunch. Retrieved 2023-08-01.
  19. ↑ Price, Jenna Gyimesi, Rob. "Workers at $12 billion HR startup Deel say they may have been misclassified as independent contractors. Deel says they have not". Business Insider. Retrieved 2023-07-30.{{cite web}}: CS1 maint: multiple names: authors list (link)
  20. ↑ Azevedo, Mary Ann (2023-07-06). "Deel under fire for alleged questionable hiring practices, advice to other companies". TechCrunch. Retrieved 2023-07-30.
  21. ↑ "Senator Padilla Urges Investigation into Deel after Company Flaunts Skirting California Worker Protection Laws". California State Senator Steve Padilla. 2023-07-06. Retrieved 2024-04-11.
  22. ↑ C. Padilla, Stephen (June 23, 2023). "Deel Letter from Senator Stephen C. Padilla to California Labor and Workforce Development Agency" (PDF). Senate of California.
  23. ↑ Lunden, Ingrid (2024-02-28). "Deel, the $12B HR startup, acquires Zavvy to step up consolidation play". TechCrunch. Retrieved 2024-05-08.
  24. ↑ Kene-Okafor, Mary Ann Azevedo and Tage (2024-03-05). "Deel acquires Africa's PaySpace, says it's crossed $500M in ARR". TechCrunch. Retrieved 2024-03-24.
  25. ↑ "Deel Careers". www.deel.com. Retrieved 2024-05-07.
  26. ↑ "HR Tech Startups Could Help Businesses Expand Their Remote Teams And Services". CB Insights Research. 2021-02-03. Retrieved 2021-10-17.
  27. 1 2 Orbach, Meir (2020-09-10). "Israeli-American automated payroll platform Deel raises $30 million". CTECH - www.calcalistech.com. Retrieved 2021-10-18.
  28. ↑ Smith, Morgan (2023-07-14). "Canada just launched a new digital nomad program—here's what you need to know". CNBC. Retrieved 2023-08-01.
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