Y Combinator-backed Deel raised $156M in its Series C at a valuation of $1.25B, up from $225M last year. Here are the top-line bullets you need to know.
Deel, a global digital payroll solutions provider, has raised $156M in Series C funding led by Y Continuity — Y Combinator’s growth fund — and others. The raise values the company at $1.25B, up from $225M just 7 months ago.
How’s the company performing?
- California-based Deel helps companies with international payroll, taxes, compliance, and benefits, with operations spanning 150 countries.
- Deel has more than 1,800 corporate clients worldwide, including Notion, Brex, Nubank, among others.
- The company says it’s seen revenue grow 20x in 2020. It also expanded from just 7 employees to more than 120 remote working employees spread across 30 countries since January 2020.
- Over the last quarter, the company reportedly processed more than $100M in salaries, while its revenue stood at well over $10M annually.
Why does the market matter?
- The virtual HR software industry is poised to reach $43B by 2026, according to CB Insights’ Industry Analyst Consensus.
- The Covid-19 pandemic has accelerated the adoption of remote work models and distributed teams, further catalyzing the industry’s rapid growth.
- Remote work has potentially reduced infrastructure expenditure, driving profitability and growth at cash-strapped start-ups and firms.
Who does Deel compete with?
- Remote (private) provides international payroll, compliance, and benefits services for remote working contractors and employees. The company has raised a total of $46M in funding. It last raised $35M in November 2020 from a Series A round.
- Panther (private), a provider of global payroll, benefits, taxes, and compliance services for remote work, has raised $1.7M in seed funding, which came within 4 months of its launch. The funding round was led by Soma Capital and other angel investors.
- Turing (private), a platform to connect tech companies vet and hire remote developers, has raised a total of $49M in funding.