Deel Raises $300M in Secondary Sale with General Catalyst Investment

Deel Prepares for Potential IPO

Deel, initially a fintech company now focused on HR solutions, is actively positioning itself for a potential initial public offering (IPO). The company announced on Tuesday that its annual revenue run rate has reached $800 million for 2024.

This growth represents a substantial increase of 70% over the previous year. Deel specializes in assisting businesses with the complexities of hiring, managing, and compensating remote employees on a global scale.

Recent Funding and Valuation

The company has successfully completed a secondary share sale, raising $300 million in capital. Investors in this round include General Catalyst and an undisclosed sovereign investor.

This sale provides an opportunity for early investors to realize a return on their investment. According to CNBC, the unnamed sovereign investor is Mubadala Investment Company, the sovereign wealth fund associated with Abu Dhabi.

Following the secondary sale, Deel’s valuation has slightly increased to $12.6 billion, up from a previous valuation of $12 billion in May 2022.

IPO Timeline and Legal Matters

Reports indicate that Deel is aiming to go public potentially as soon as next year. Previously, in February of last year, the company suggested an IPO timeframe of 2025 or 2026.

Currently, Deel is also addressing legal challenges. A motion has been filed with a Florida court requesting the dismissal of a lawsuit alleging that the platform facilitated money laundering activities.

The company is working to resolve these legal matters while simultaneously preparing for its anticipated public debut.

Key Highlights

• Annual revenue run rate reached $800 million in 2024.
• Revenue growth of 70% year-over-year.
• $300 million raised in secondary share sales.
• Current valuation of $12.6 billion.
• Potential IPO timeline: as early as next year.