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Deel (company)

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Deel
Company typePrivate
Founded2018; 6 years ago (2018)
Founder
  • CEO: Alex Bouaziz
  • CRO: Shuo Wang
  • COO: Dan Westgarth
HeadquartersSan Francisco
ProductsProfessional employer organization, payroll, invoice processing, debit cards, payment processing
Revenue$300m
Number of employees
2200[1] (2023)
Websitedeel.com

Deel is a privately-held payroll and compliance provider based in San Francisco, California.[2][3] The company provides hiring and payments services for companies hiring international employees and contractors.[2]

History

Deel was founded in 2018 by Alex Bouaziz, Shuo Wang, and Ofer Simon. Alex and Shuo met while studying at MIT in 2013,[2][4] while Alex and Ofer had previously collaborated on other business ventures. The founders had encountered difficulty hiring international workers affordably while bootstrapping their own businesses.[4] Deel entered the Y Combinator startup accelerator in 2019.[5] Its initial product allowed companies to hire contractors only.[6]

In May 2020, venture capital firm Andreessen Horowitz led a $14 million Series A round.[7] CNBC reported that the round was conducted entirely using videoconferencing software.[2] In September 2020 the company then raised an additional $48 million in a Series B led by Spark Capital.[8] Forbes attributed the growth to the increasing adoption of remote work due to the coronavirus pandemic.[4]

In April 2021, Deel raised $156 million in a Series C round, becoming a unicorn. The investment was led by Y Combinator's YC Continuity Fund, Andreessen Horowitz, and Spark Capital.[9] The company acquired Zeitgold, a German-based payroll automation provider in August 2021 for an undisclosed amount.[10][11] In October 2021, Deel raised $425 million in a Series D round led by Coatue at a $5.5 billion valuation.[12] In May 2022, Deel raised a $50 million round at a $12 billion valuation from investors including Emerson Collective.[13]

In November 2022 Deel acquired PayGroup, a public Australian payroll company for A$121,000,000.[14]

In January 2023 Deel acquired Capbase for an undisclosed amount.[15]

In March 2023 former workers claimed they were miscategorized.[16][17] Bouaziz was reportedly employed as a contractor, but was later confirmed to be a full-time employee.[18]

Products

The company offers a central platform for companies to hire employees and independent contractors located remotely.[2][10] Deel hires employees through their own local entity on a company's behalf, acting as the employer of record[19] and managing compliance with employment laws in each country.[4] As of August 2021, it owned 45 entities.[10]

The company processes international payroll, with a range of withdrawal options in multiple currencies, including Coinbase, PayPal, Payoneer, Revolut, and bank transfer.[20] It reported that about 2% of its users withdrew funds in cryptocurrency in 2021.[21]

Deel assists with creating contracts that comply with local labor laws using localized templates.[8][20] It also helps workers access insurance options for health[2][8] and provides immigration advice about visa processes to companies with digital nomads.[22]

Operations

Deel is headquartered in San Francisco, California. As of January 2023, it reported having 2000 employees.[13] The company operates completely remotely.[9]

References

  1. ^ "Deel Careers | Deel".
  2. ^ a b c d e f Son, Hugh (2020-05-21). "Remote work start-up Deel scores $14 million investment led by Andreessen Horowitz". CNBC. Retrieved 2021-10-17.
  3. ^ "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.
  4. ^ a b c d 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.
  5. ^ "Deel: Payroll for remote teams". Y Combinator. Retrieved 2021-10-17.
  6. ^ "The top 10 startups from Y Combinator W19 Demo Day 1". TechCrunch. 19 March 2019. Retrieved 2021-10-17.
  7. ^ "Meet the startups helping other startups go remote". Protocol — The people, power and politics of tech. 2020-06-04. Retrieved 2021-10-17.
  8. ^ a b c "Deel nabs $30M more for payroll, compliance and other tools to run global workforces". TechCrunch. 9 September 2020. Retrieved 2021-10-17.
  9. ^ a b "Remote hiring startup Deel raises $156M at a $1.25B valuation after 20x growth in 2020". TechCrunch. 21 April 2021. Retrieved 2021-10-17.
  10. ^ a b c Kokalitcheva, Kia (2021-08-03). "Don't call it "outsourcing": Hiring employees globally is getting easier". Axios. Retrieved 2021-10-17.
  11. ^ "Done: Deel welcomes new acquisition ZeitGold". Geektime. 2021-08-04. Retrieved 2021-10-17.
  12. ^ "With customers like Coinbase and Shopify, remote hiring startup Deel raises $425M at a $5.5B valuation". TechCrunch. 18 October 2021. Retrieved 2022-07-18.
  13. ^ a b Cai, Kenrick. "HR Company Deel, Now Valued At $12 Billion, Nears $300 Million Of Revenue". Forbes. Retrieved 2023-03-07.
  14. ^ "HR Company Deel Completes PayGroup Acquisition". www.businesswire.com. 2022-11-21. Retrieved 2023-07-30.
  15. ^ Azevedo, Mary Ann (2023-01-11). "Deel enters equity management space with acquisition of Capbase". TechCrunch. Retrieved 2023-08-01.
  16. ^ 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)
  17. ^ Azevedo, Mary Ann (2023-07-06). "Deel under fire for alleged questionable hiring practices, advice to other companies". TechCrunch. Retrieved 2023-07-30.
  18. ^ "US lawmakers are calling for a Department of Labor investigation into $12B HR startup Deel over its use of independent contractors, citing Insider's investigation". Yahoo Finance. 2023-07-26. Retrieved 2023-08-01.
  19. ^ "HR Tech Startups Could Help Businesses Expand Their Remote Teams And Services". CB Insights Research. 2021-02-03. Retrieved 2021-10-17.
  20. ^ a b Orbach, Meir (2020-09-10). "Israeli-American automated payroll platform Deel raises $30 million". CTECH - www.calcalistech.com. Retrieved 2021-10-18.
  21. ^ Tanzi, Alexandre (2022-02-10). "Crypto Paychecks Have More Appeal Outside the U.S., Says Hiring Firm". Bloomberg News. Retrieved 2022-07-17.
  22. ^ 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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