Deel
TypePrivate
Founded2018 (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 (2023)
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 co-founded in 2018 by Alex Bouaziz and Shuo Wang.[2] Ofer Simon was listed as a co-founder but left the company in 2019.[4] Bouaziz and Wang met while studying at MIT in 2013.[5] The founders had encountered difficulty hiring international workers affordably while bootstrapping their own businesses.[5] Deel entered the Y Combinator startup accelerator in 2019.[6] Its initial product allowed companies to hire contractors only.[7]

In 2021, the company began supporting withdrawals in cryptocurrency.[8]

In November 2022 Deel entered into a partnership with Wise, allowing customers to send cross-border funds with an email address instead of bank details.[9]

To promote remote work, in 2023 Deel selected a 'Social Media Nomad' to travel around New Zealand and Australia in a sleeper van.[10]

In March 2023 former workers claimed they were miscategorized.[11][12] In June 2023, the Senator Stephen C. Padilla sent a formal request to the California Labor and Workforce Development Agency urging them to investigate and hold the company's executives accountable.[13]

Products

The company offers a central platform for companies to hire employees and independent contractors located remotely.[2][14] Deel hires employees through their own local entity on a company's behalf, acting as the employer of record[15] and managing compliance with employment laws in each country.[5] As of August 2021, it owned 45 entities.[14] As of 2023, Deel operates in more than 150 countries. Deel's services are currently not available in Afghanistan, Burundi, the Central African Republic, the Republic of Congo, Cuba, Crimea, the Democratic Republic of Congo, Eritrea, Guinea, Guinea-Bissau, Iran, Iraq, Liberia, Libya, Myanmar, North Korea, Papua New Guinea, Somalia, South Sudan, Sudan, Syria, Vanuatu, Venezuela, and Yemen.[16]

The company processes international payroll, with a range of withdrawal options in multiple currencies, including Coinbase, PayPal, Payoneer, Revolut, and bank transfer.[17] It reported that about 2% of its users withdrew funds in cryptocurrency in 2021.[18]

Deel assists with creating contracts that comply with local labor laws using localized templates.[19][17] It also helps workers access insurance options for health[2][19] and provides immigration advice about visa processes to companies with digital nomads.[20]

Deel Engage, a set of Slack plugins, provides HR functionalities to increase company engagement.[21][22]

Growth

In May 2020, venture capital firm Andreessen Horowitz led a $14 million Series A round.[23] 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.[19] Forbes attributed the growth to the increasing adoption of remote work due to the coronavirus pandemic.[5]

In April 2021, Deel raised $156 million in a Series C round, becoming a unicorn.[24] The company acquired Zeitgold, a German-based payroll automation provider in August 2021 for an undisclosed amount.[14][25]

In January 2022 Deel acquired Roots, a US-based HR software platform for an undisclosed amount.[26]

In November 2022 Deel acquired PayGroup, a public Australian payroll company for A$121,000,000.[27]

In January 2023 Deel acquired Capbase, a equity management platform for an undisclosed amount.[28]

Funding history
Date Funding type Money raised Lead investor Valuation
2019 Seed round — Y Combinator —[29]
May 2020 Series A $14M Andreessen Horowitz —
Sep 2020 Series B $48M Spark Capital $225mln[24]
Apr 2021 Series C $156M YC Continuity Fund, Andreessen Horowitz, Spark Capital $1.25bn[24]
Oct 2021 Series D $425M Coatue $5.5bn[30]
May 2022 — $50M — $12bn[31]

Operations

Deel is headquartered in San Francisco, California. As of January 2023, it reported having 2000 employees.[31] The company operates completely remotely.[32]

See also

References

  1. ↑ "Deel Careers | Deel".
  2. 1 2 3 4 5 6 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. ↑ Team, TechRound (2021-11-24). "3. Deel". TechRound. Retrieved 2023-08-04.
  5. 1 2 3 4 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.
  6. ↑ "Deel: Payroll for remote teams". Y Combinator. Retrieved 2021-10-17.
  7. ↑ "The top 10 startups from Y Combinator W19 Demo Day 1". TechCrunch. 19 March 2019. Retrieved 2021-10-17.
  8. ↑ Azevedo, Mary Ann (2022-02-17). "Remote hiring startup Deel's new feature gives businesses the option to fund payroll in crypto". TechCrunch. Retrieved 2023-08-04.
  9. ↑ PYMNTS (2022-11-14). "Wise and Deel Team to Offer Easier Cross-Border Payments". www.pymnts.com. Retrieved 2023-08-04.
  10. ↑ Majors, Tyrah (2023-03-14). "Seattle woman hired to explore New Zealand, Australia while working remotely from van". KOMO. Retrieved 2023-08-04.
  11. ↑ 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)
  12. ↑ Azevedo, Mary Ann (2023-07-06). "Deel under fire for alleged questionable hiring practices, advice to other companies". TechCrunch. Retrieved 2023-07-30.
  13. ↑ C. Padilla, Stephen (June 23, 2023). "Deel Letter from Senator Stephen C. Padilla to California Labor and Workforce Development Agency" (PDF). Senate of California.
  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. ↑ "HR Tech Startups Could Help Businesses Expand Their Remote Teams And Services". CB Insights Research. 2021-02-03. Retrieved 2021-10-17.
  16. ↑ "Where Is Deel Available?". Deel. Retrieved 2023-11-14.
  17. 1 2 Orbach, Meir (2020-09-10). "Israeli-American automated payroll platform Deel raises $30 million". CTECH - www.calcalistech.com. Retrieved 2021-10-18.
  18. ↑ Tanzi, Alexandre (2022-02-10). "Crypto Paychecks Have More Appeal Outside the U.S., Says Hiring Firm". Bloomberg News. Retrieved 2022-07-17.
  19. 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.
  20. ↑ 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.
  21. ↑ "How To Use The Deel Engage Plugins". Retrieved 2023-08-04.
  22. ↑ "Remote HR startup Deel hits $295 million in ARR, $12 billion valuation". ctech. 2023-01-23. Retrieved 2023-08-04.
  23. ↑ "Meet the startups helping other startups go remote". Protocol — The people, power and politics of tech. 2020-06-04. Retrieved 2021-10-17.
  24. 1 2 3 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.
  25. ↑ "Done: Deel welcomes new acquisition ZeitGold". Geektime. 2021-08-04. Retrieved 2021-10-17.
  26. ↑ 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.
  27. ↑ "HR Company Deel Completes PayGroup Acquisition". www.businesswire.com. 2022-11-21. Retrieved 2023-07-30.
  28. ↑ Azevedo, Mary Ann (2023-01-11). "Deel enters equity management space with acquisition of Capbase". TechCrunch. Retrieved 2023-08-01.
  29. ↑ "Deel: The all-in-one HR platform for global teams". Y Combinator. Retrieved 2023-08-04.
  30. ↑ 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.
  31. 1 2 Cai, Kenrick. "HR Company Deel, Now Valued At $12 Billion, Nears $300 Million Of Revenue". Forbes. Retrieved 2023-03-07.
  32. ↑ "Remote hiring startup Deel raises $156M at a $1.25B valuation after 20x growth in 2020". TechCrunch. 21 April 2021. Retrieved 2021-10-17.
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