Deel Valuation Surpasses $17B After $300M Funding Round

Deel Secures $300 Million in Series E Funding Amidst Legal Battles

Despite the ongoing legal dispute between payroll companies Deel and Rippling, involving allegations of corporate espionage, investors remain confident. Deel announced on Thursday a successful $300 million Series E funding round.

Investment Details and Key Participants

This funding round was co-led by prominent fintech venture capital firms Ribbit Capital and Andreessen Horowitz (a16z). Existing investors, including Coatue Management and General Catalyst, also participated in the round.

Financial Performance and Growth

Deel reports achieving profitability for the past three years. The company has exceeded $1 billion in Annual Recurring Revenue (ARR).

September marked a particularly strong month, with revenue reaching $100 million. Deel currently serves over 35,000 customers.

These customers utilize the platform to manage a workforce exceeding 1.5 million individuals across more than 150 countries.

Focus on Global Employment Solutions

Deel’s core business centers on providing services to global companies. It simplifies the complexities associated with international employment regulations and currency exchange for distributed teams.

Investor Confidence Despite Litigation

The ongoing lawsuit filed by Rippling in California against Deel is currently in the discovery phase, with no trial date yet scheduled. However, this legal challenge hasn’t deterred investment.

Ribbit Capital’s founder, Micky Malka, and a16z co-founder, Ben Horowitz, publicly expressed their support for Deel.

Statements from Leading Investors

Malka stated that Ribbit Capital has long admired Deel, recognizing it as a trusted brand among businesses. Horowitz commented that a16z is impressed by Deel’s progress in developing a leading HR platform for global organizations.

Rippling's Fundraising Success

It’s noteworthy that Rippling has also continued to attract investment despite the legal proceedings. In May, Rippling secured $450 million in Series G funding, achieving a valuation of $16.8 billion.