Deel (company)

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]

Not to be confused with Dell or Deli (company).
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

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 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]

The company processes international payroll, with a range of withdrawal options in multiple currencies, including Coinbase, PayPal, Payoneer, Revolut, and bank transfer.[16] It reported that about 2% of its users withdrew funds in cryptocurrency in 2021.[17]

Deel assists with creating contracts that comply with local labor laws using localized templates.[18][16] It also helps workers access insurance options for health[2][18] and provides immigration advice about visa processes to companies with digital nomads.[19]

Deel Engage, a set of Slack plugins, provides HR functionalities to increase company engagement.[20][21]

Growth

In May 2020, venture capital firm Andreessen Horowitz led a $14 million Series A round.[22] 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.[18] 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.[23] The company acquired Zeitgold, a German-based payroll automation provider in August 2021 for an undisclosed amount.[14][24]

In January 2022 Deel acquired Roots, a US-based HR software platform for an undisclosed amount.[25]

In November 2022 Deel acquired PayGroup, a public Australian payroll company for A$121,000,000.[26]

In January 2023 Deel acquired Capbase, a equity management platform for an undisclosed amount.[27]

Funding history
Date Funding type Money raised Lead investor Valuation
2019 Seed round — Y Combinator —[28]
May 2020 Series A $14M Andreessen Horowitz —
Sep 2020 Series B $48M Spark Capital $225mln[23]
Apr 2021 Series C $156M YC Continuity Fund, Andreessen Horowitz, Spark Capital $1.25bn[23]
Oct 2021 Series D $425M Coatue $5.5bn[29]
May 2022 — $50M — $12bn[30]

Operations

Deel is headquartered in San Francisco, California. As of January 2023, it reported having 2000 employees.[30] The company operates completely remotely.[31]

See also

References
  1. "Deel Careers | Deel".
  2. 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. 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. 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. Orbach, Meir (2020-09-10). "Israeli-American automated payroll platform Deel raises $30 million". CTECH - www.calcalistech.com. Retrieved 2021-10-18.
  17. Tanzi, Alexandre (2022-02-10). "Crypto Paychecks Have More Appeal Outside the U.S., Says Hiring Firm". Bloomberg News. Retrieved 2022-07-17.
  18. "Deel nabs $30M more for payroll, compliance and other tools to run global workforces". TechCrunch. 9 September 2020. Retrieved 2021-10-17.
  19. 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.
  20. "How To Use The Deel Engage Plugins". Retrieved 2023-08-04.
  21. "Remote HR startup Deel hits $295 million in ARR, $12 billion valuation". ctech. 2023-01-23. Retrieved 2023-08-04.
  22. "Meet the startups helping other startups go remote". Protocol — The people, power and politics of tech. 2020-06-04. Retrieved 2021-10-17.
  23. 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.
  24. "Done: Deel welcomes new acquisition ZeitGold". Geektime. 2021-08-04. Retrieved 2021-10-17.
  25. 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.
  26. "HR Company Deel Completes PayGroup Acquisition". www.businesswire.com. 2022-11-21. Retrieved 2023-07-30.
  27. Azevedo, Mary Ann (2023-01-11). "Deel enters equity management space with acquisition of Capbase". TechCrunch. Retrieved 2023-08-01.
  28. "Deel: The all-in-one HR platform for global teams". Y Combinator. Retrieved 2023-08-04.
  29. 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.
  30. Cai, Kenrick. "HR Company Deel, Now Valued At $12 Billion, Nears $300 Million Of Revenue". Forbes. Retrieved 2023-03-07.
  31. "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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