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About
Summary
Valuation

Founded: 2019

Headquarters: San Francisco, California

Deel is the all-in-one HR platform for global teams. It helps companies simplify every aspect of managing an international workforce, from culture and onboarding to local payroll and compliance. Deel works for independent contractors and full-time employees in more than 150 countries, compliantly. And getting set up takes just a few minutes.

Key Facts

1

In the evolving landscape of global employment, companies are shifting from traditional, locally focused hiring practices to embracing a global talent pool, spurred by the advantages of remote work. This transition, however, introduces significant challenges in managing and compensating a globally distributed workforce. Employers face the complexities of adhering to diverse local and international payroll and HR regulations, which can be daunting, costly, and time-consuming. With limited solutions available, such as establishing costly foreign subsidiaries or relying on professional employment organizations that come with high fees, companies are in dire need of efficient ways to navigate these complexities without compromising compliance or efficiency.

2

Deel simplifies the management and compensation of a global workforce by offering an all-in-one platform that handles the complexities of international payroll, tax, and compliance laws. It enables companies to hire, onboard, pay, and manage employees in over 150 countries without the need for local entities, navigating the intricacies of local labor laws and tax regulations seamlessly. By consolidating various HR functions into a single platform, Deel eliminates the need for multiple tools and reduces the administrative burden, making global employment accessible and manageable for businesses of all sizes.

3

Deel equips teams with the tools, features, and guidance they need in a single platform to eliminate hiring and management borders. It enables businesses and teams to collaborate more effortlessly than before, unlocking access to unprecedented opportunities.

4

Deel offers multiple solutions for hiring and managing teams globally.

5

Deel's Hire Anywhere service simplifies the global hiring and management of both contractors and EOR (Employer of Record) employees, enabling businesses to automate processes such as onboarding, compliance, invoicing, health benefits, and payments.

6

For EOR employees, Deel operates legal entities in over 100 countries and provides expert visa assistance, facilitating the hiring of employees globally on behalf of its clients.

7

Deel collects all tax and permit documents, generates W9s and 1099s, creates and sends contracts, and maintains an audit trail.

8

The Deel platform streamlines the creation of invoices and facilitates global payments, providing a single hub for all contracts, expenses, and benefits, along with a unified overview of the team. It enables companies to execute payments to everyone through a single bulk transaction while handling tax withholdings, pension contributions, benefits, and government fees.

9

It also simplifies termination by automatically calculating the final payment per the termination date, country labor law, time off used, and more.

10

Deel’s hire for contractors allows companies to hire, pay, and provide benefits to contractors anywhere in the world in minutes.

11

Deel Shield offers the highest security level for contractor hiring, providing complete protection against the risks of misclassification.

12

Deel also provides immigration services handling all the intricate visa administration and allows companies to run background checks on candidates.

13

Deel HR empowers clients to oversee their entire workforce, ranging from direct employees to international contractors, covering aspects such as onboarding, offboarding, leave management, workflows, expenses, a people directory, organizational charts, compliance, security, and reporting.

14

In addition, with Deel Equipment, companies can ship and manage laptops, monitors, and headphones for their workforce needs in a few clicks.

15

Deel Equity lets users offer almost any kind of equity or token plan to employees and contractors, including Non-Qualified Stock Options (NSOs), Stock Warrants, Restricted Stock Units (RSUs), Restricted Token Units (RTUs), and Stock Appreciation Rights (SARs) and Phantom stocks.

16

Deel charges its customers directly based on the number of active contracts per month and does not charge contractors or employees.

17

For independent contractors, Deel charges its customers $49 per active contract per month.

18

For full-time employees hired through an EOR model, Deel charges its customers $599 per active contract per month.

19

For global payroll and immigration services, Deel charges custom pricing.

20

Deel HR is free for companies of up to 200 people as of early 2023.

21

In a Forbes interview in March 2023 discussing the company's future in five to ten years, CEO Alex Bouaziz said, “We want to continue carrying out our vision and mission and help hundreds of millions of people work for the best companies. We are very, very far from what we want to achieve. We didn't even get to 0.001%. We have to continue building great product automation and a better experience to scale the right way.”

22

According to TechCrunch in January 2023, Deel is profitable, having been EBITDA positive since September 2023. Deel also claims that it generates profit margins of 85%.

23

According to Forbes in December 2023, Deel’s revenue skyrocketed from $1.4 million in 2020 to $169 million last year (2022). Sales are expected to more than double this year, reaching approximately $350 million. In the realm of annual recurring revenue, a key indicator in the software industry, it once achieved the fastest growth rate ever recorded in the sector. Looking towards a 2025 IPO, Deel currently holds $550 million in reserves and continues to be profitable, with monthly earnings of about $5 million, according to Bouaziz. He intends to allocate up to $200 million for acquisitions over the coming 18 months, with a significant portion expected to go towards purchasing human resources companies in rapidly growing international markets.

24

In January 2023, TechCrunch reported that Deel acquired fintech Capbase for an undisclosed amount in a cash and stock deal. Capbase, located in San Francisco, asserts that it has the capability to instantly refresh a company's cap table whenever shares are issued, contracts are signed, or funds are raised from investors. Utilizing this data, it develops API integrations to facilitate the establishment of bank accounts, payroll systems, and business insurance. Deel aims to simplify the challenges associated with starting and expanding businesses through its acquisition of Capbase. The appeal of Capbase lies in its support for businesses in their initial stages, including incorporation and fundraising, as well as its assistance with compliance filings and equity grants as companies develop.

25

In August 2023, Business Insider reported that Deel was interested in acquiring its competitor Papaya Global, according to a letter sent from Deel's chairman and CFO, Philippe Bouaziz, obtained by Insider. "The Deel leadership team and I have been following Papaya Global for quite some time now with great interest," Bouaziz wrote to Papaya's board of directors. "We are eager to get to know the company better over the coming few months as we may contemplate an acquisition offer at a moment in time."

26

In February 2024, Deel announced it will acquire Zavvy, a Munich-based AI-based “people development” startup building tools for personalized career progression, training, and performance management. Deel will bring Zavvy’s services onto the same platform as its existing services — a nod to the company shifting focus to work more with distributed and non-distributed workforces. It plans also to start incorporating more AI across that wider portfolio. Finally, Deel will also make its existing Deel HR tool, which was free for organizations of up to 200 users, now “free” for existing customers regardless of their size.

27

In March 2024, Deel announced it is acquiring African-based payroll and HR software and services company PaySpace in a deal that marks its largest acquisition to date. Africa-based PaySpace boasts over 14,000 customers utilizing its software and services in 44 countries across Europe, Latin America, the Middle East and Africa. Customers include multinationals across various industries such as Heineken, Coca-Cola Beverages and Puma Sports SA.

28

In March 2024, according to TechCrunch, Deel revealed that it has crossed $500 million in annual recurring revenue (ARR). That’s up from $290 million in ARR at the end of 2022. Deel also claims that it has been EBITDA positive since September 2022 and still has $600 million left in the bank. IPO plans are still a way off but likely to be in the 2025/2026 timeframe.

Industry

Primary Vertical

FinTech

Mosaic Score

100

Money - 100

Momentum - 100

Management - 100

Market - 100

What is a Mosaic Score?

Employees: 500


Key Officers

Name Work History Title Status
officer name 1 Founder Current
officer name 2 Founder Current
officer name 3 Founder Current

Customers

Businesses that accept or are transitioning to accept bitcoin payments. Customers that own or trade cryptocurrency

Key Investors

Businesses that accept or are transitioning to accept bitcoin payments. Customers that own or trade cryptocurrency

Size of Market

Businesses that accept or are transitioning to accept bitcoin payments. Customers that own or trade cryptocurrency

Market Position

Businesses that accept or are transitioning to accept bitcoin payments. Customers that own or trade cryptocurrency

Valuation & Fundraising

Last Round: Jan. 2021, Seed

Valuation Post-Money: $10M

 

Amount Raised: $1M

Total Funds Raised: $10M

 

Linqto Implied Valuation: $10M


Funding Rounds

Date Round Amount Valuation
01/01/2021 Seed $11M $11M
01/01/2021 Seed $11M $11M
01/01/2021 Seed $11M $11M

Valuation Over Time

Linqto Chart

1 buyback

Competitive Landscape

Company Valuation Revenue

Company Name

San Francisco, California

$65.3B $1.3B

Company Name

San Francisco, California

$65.3B $1.3B

Company Name

San Francisco, California

$65.3B $1.3B

Company Name

San Francisco, California

$65.3B $1.3B