The Rise of Remote Work and Deel's Expansion

The COVID-19 pandemic prompted a significant shift towards remote work for numerous organizations globally. Despite increasing vaccination rates and plans for office reopenings, it's evident that remote work arrangements are becoming a permanent fixture for many companies.

Deel's Growth and Funding

Deel, a company specializing in payroll, compliance solutions, and related services for remote hiring, has experienced a surge in demand due to this evolving work landscape.

Recently, the San Francisco-based company announced the successful completion of a Series C funding round, securing $156 million. This round was spearheaded by the YC Continuity Fund, alongside contributions from existing investors Andreessen Horowitz and Spark Capital.

Notable participants in this funding round included Uber CEO Dara Khosrowshahi, Lachy Groom – formerly of Stripe’s payments division – Jeffrey Katzenberg, Jeff Wilke, and Anthony Schiller.

A Rapid Ascent to Unicorn Status

This funding is particularly noteworthy for several reasons. It arrives just over seven months after Deel’s $30 million Series B financing, representing more than a fivefold increase in investment size.

Furthermore, this achievement elevates Deel to unicorn status, with a valuation of $1.25 billion. This is especially significant considering the company’s post-money valuation stood at $225 million only seven months earlier.

Deel’s growth has been substantial, reporting a “20x” revenue increase in 2020, serving over 1,800 business clients – a rise from 500 at the time of its September funding.

Deel's Core Functionality

Founded by MIT alumni Alex Bouaziz and Shuo Wan, Deel’s mission is to empower businesses to hire talent globally while ensuring full compliance.

The company asserts that its platform enables businesses to onboard international employees or contractors in under five minutes, eliminating the need for establishing a local entity and facilitating payments in over 120 currencies with a single click.

Future Plans and Industry Outlook

Deel intends to utilize the newly acquired capital to accelerate its international expansion, establishing 80 new, Deel-owned entities worldwide throughout 2021.

The company also plans to expand its team and enhance its product offerings. Since January 2020, Deel’s fully remote team has grown from seven to over 120 employees across 26 countries.

CB Insights forecasts the virtual HR software market to reach $43 billion by 2026, highlighting the increasing importance of platforms like Deel in facilitating the transition to remote-first work models.

Industry Expert Perspective

Ali Rowghani of YC Continuity, who has joined Deel’s board, believes the company was already a leader in the remote work space before the pandemic and will continue to be so in the future.

He stated that the fundamental nature of work is changing, and the Deel team is uniquely positioned to overcome the challenges of remote work, enabling companies to recruit the most qualified individuals globally, regardless of location.

Comprehensive Service Offering

As previously covered by TechCrunch, Deel currently provides a suite of tools for both employees and employers, including payroll services, tax compliance information, contract creation assistance, invoicing services, and various insurance options.

The company’s future strategy involves expanding this suite with additional services for both workers and employers, such as salary-based loans for employees, expanded insurance and benefits packages, and other relevant offerings.

Note: This article has been updated to include additional financial details.