Summary:
Deel raised $300M in Series E funding, led by Ribbit Capital, valuing the company at $17.3 billion
Plans to use funds for acquisitions and global expansion, aiming for native payroll in over 100 countries by 2029
Involved in legal battles with rival Rippling, including suits for racketeering and defamation
Achieved $100M monthly revenue in September with EBITDA of $15-17M
Previously valued at $12.6B and acquired competitor Omnipresent for ~$15M
Deel's Monumental Funding Round
Payroll startup Deel announced on Thursday that it has raised $300 million in a Series E funding round, catapulting its valuation to an impressive $17.3 billion. The round was led by new investor Ribbit Capital, with continued support from existing backers Andreessen Horowitz and Coatue Management.
Strategic Expansion Plans
Based in San Francisco, California, Deel plans to utilize this fresh capital for strategic acquisitions and to significantly expand its payroll infrastructure. The company has set an ambitious goal to offer native payroll services in over 100 countries by 2029, reinforcing its commitment to global growth.
Intense Rivalry and Legal Battles
This funding milestone comes amidst ongoing litigation with rival Rippling. Rippling has sued Deel, alleging racketeering, trade-secret misappropriation, and unfair competition. In response, Deel filed a defamation suit against Rippling in April, dismissing the claims as a "multi-year smear campaign." Deel CEO Alex Bouaziz declined to comment on the litigation but labeled it a "frivolous lawsuit."
Earlier this year, Rippling raised $450 million in a Series G funding round, valuing the company at $16.8 billion, highlighting the competitive tension in the HR tech space.
Financial Performance and Growth Metrics
Bouaziz revealed that Deel crossed $100 million in monthly revenue for the first time in September, with earnings before interest, taxes, depreciation, and amortization (EBITDA) ranging between $15 million and $17 million. Founded in 2019, Deel specializes in helping companies hire international employees and contractors while ensuring compliance with local labor laws, and automates payroll processing for businesses operating across multiple countries.
Previous Valuation and Acquisitions
Deel was previously valued at $12.6 billion after a $300 million secondary purchase by General Catalyst and Abu Dhabi's Mubadala earlier this year. The company recently acquired its London-based competitor Omnipresent in a deal worth approximately $15 million, according to a source familiar with the matter.
Deel had already crossed the $1 billion annual revenue run rate in the first quarter and had earmarked up to $500 million for acquisitions this year to bolster growth, as previously stated.
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