In the midst of a cooling off in the technology sector, the novelty did not go unnoticed. Deel, the start-up specializing in salary transfers, has just raised $50 million, according to Axios. Which values it at $12 billion. The company, co-founded in 2018 by Alex Bouaziz, a Frenchman who emigrated to the United States, has seen its growth take off thanks to the rise of hybrid work.
“This is just the beginning,” says “Echos”, its co-founder Shuo Wang. “We are at the beginning of a massive trend, which is accelerating. We are facing a demand that is increasing very quickly. Companies are increasingly looking to recruit internationally,” she says.
Last month, the startup announced it had hit $100 million in annual recurring revenue. As of early 2021, the company had just $4 million in annual revenue, according to TechCrunch. On twitter the startup pointed out that this growth trajectory was superior to that of Slack and Shopify in their early days.
Hybrid Job Boom
Deel is at the crossroads of two major trends. Many companies find it difficult to recruit qualified personnel, which forces them to redouble their inventiveness to hire the best profiles available and adapt to their needs. And they increasingly operate in a hybrid way, with part of the teams working remotely. This facilitates the onboarding of new recruits based abroad.
The pandemic played a role, prompting many companies to switch to hybrid work. But it is, according to Shuo Wang, a much deeper trend. “We are seeing a lot of interest from technology companies, but also from more traditional sectors”, explains the co-founder. This concerns both SMEs and large companies. Ten years from now, recruiting part of the teams abroad will have “become the norm”, he assures.
7,000 customers, 90 countries
Meanwhile, the start-up’s numbers are impressive. In less than four years, it raised US$ 629 million, in addition to the US$ 50 million from its last fundraising. Recruited 1,000 employees, spread across more than 90 countries. “We are a company where everything is done remotely,” notes Shuo Wang.
The start-up now has 7,000 companies among its customers. Among them, Coinbase, Dropbox and Shopify, says TechCrunch. The latter have recruited collaborators in more than 150 countries thanks to Deel, assures the co-founder. The start-up assumes legal responsibility for each engagement. And it is responsible for drafting the contracts, with the help of lawyers and providing them with health coverage in accordance with the law of the country.
In countries where Deel has offices, employees are hired directly by the start-up, continuing to work for the company that used its services. Deel offers solutions to pay its employees “in one click”, according to its website. Allows you to recruit employees, but also contractors for specific missions. Its customers pay a monthly subscription, which depends on the number of contracts signed.
Pay toll solutions are not new, and many start-ups are looking to position themselves in this growing market. But Shuo Wang says she is calm in the face of competition. “There are many small and medium-sized companies that are already in this market,” he admits. But Deel is the fastest growing and offers the most complete platform in terms of products and services. »
Its priority for the coming years: to continue to grow at full speed, in order to maintain its leadership over the competition. That means “launching in other countries” but also “adding more services” to improve the employee experience, notes Shuo Wang. A next step could be, for example, to help employees pay their taxes in their country of residence. For now, Deel only offers this option in the United States.
For the co-founder, who emigrated from China to the United States to study at MIT, Deel’s solutions can transform the global job market. “If my parents can one day work in China, being hired by American companies, they would do it without hesitation, as my whole family is there. Companies are also interested in offering potential recruits the ability to work remotely from their own country, he believes.