For the third time in the last year, hiring software company Deel announced a new round of funding. The latest series gains them $425 million and boosts their total to $630 million.
The company has been on a steady growth trajectory and the most recent round of funding valued them at almost $5.5 billion. That’s 4 times what their value was in April 2021, when it stood at $1.25 billion. Since then, they’ve seen their customer base increase from 1,800 to over 4,500.
The Series C investment round was led by US-based Coatue, with co-led deals for Rahul Kishore and Lucas Swisher. New investors would also participate in this round, including Altimeter Capital, Andreessen Horowitz, the YC Continuity Fund, and Spark Capital. Andreessen Horowitz led the Series C funding with a co-LED deal for Rahul Kishore.
Deel Overview
Deel started with four employees and has since grown to over 400. It’s nearly quadrupled its staff size, as it looks for ways to make work more accessible for teams, businesses, and remote employees. Its mission is to simplify onboarding for companies that are embracing new working arrangements.
Based out of San Francisco and Tel Aviv, the company is a leader in digital solutions.
One of the founders, Shuo Wang, graduated from the Massachusetts Institute of Technology before transitioning into an entrepreneur and investor. Their other founder, Alex Bouaziz, graduated with a degree in science from the Technion–Israel Institute of Technology.
Global customers include Coinbase, Intercom, and Shopify, represented by more than 150 countries. The company that provides payroll, compliance tools, and other services to help businesses hire remotely – and pay people in more than 120 currencies across various borders – has seen a sharp increase in demand ever since the response to the coronavirus pandemic upended traditional work structures.
From contracts to mobility, Deel has your back. They provide all the tools you need to create and send compliant agreements that are customizable and localized. You can choose from their library of templates or upload your own design to put a personal touch on each document.
Bouaziz brought up a great point that I hadn’t considered. “The way people work is changing, and it may never go back to the way it was before,” he said. Bouaziz’s point makes sense to me because companies should be free to hire the best talent whether or not they offer payments or not. That’s why Deel exists; it offers people from all around the world the freedom to build their careers with a company of their choice. They’re going to keep making tools that shape the future of work, and hope you join them in challenging oppressive norms!
Coatue has over $45 billion under management, and after looking at Deel’s model and functionality it was easy to tell they were a perfect fit.
Coatue, a well-known investor in early-stage companies, has been following Deel closely and is impressed by what the company has built thus far. “We believe we’re in the early innings of what their team is capable of,” said Rahul Kishore, Senior Managing Director at Coatue.
“Coatue had the opportunity to work with Jobbud early on when they were still under the radar. We were then impressed by how they were able to distill something so daunting and overwhelming into a tool anyone can use to take global employment from dream to reality”, said Lucas Swisher, General Partner at Coatue.
Conclusion
This is great news for software company Deel, which has seen its value increase fourfold in just a year. The latest round of funding gives them a boost of $425 million, taking their total to $630 million. With a customer base increasing from 1,800 to over 4,500 in the same period, it’s clear that Deel is on a strong growth trajectory. This new funding will no doubt help them to continue expanding their business and providing excellent service to their customers.
