Funding Round and Valuation Milestone
Payroll startup Deel has reportedly raised $300 million in a Series E funding round, according to Reuters, valuing the company at $17.3 billion. Sources indicate the round was led by new investor Ribbit Capital, with participation from existing backers including Andreessen Horowitz and Coatue Management. This represents a significant increase from the company’s previous valuation of $12.6 billion earlier this year.
Global Expansion Strategy
The San Francisco-based company plans to use the fresh capital to expand its global payroll infrastructure and pursue strategic acquisitions, according to the report. Analysts suggest Deel aims to offer native payroll services in more than 100 countries by 2029, building on its existing platform that helps companies hire international employees and contractors while ensuring compliance with local labor laws. The company’s automated payroll processing for multinational businesses appears central to this expansion strategy.
Financial Performance and Growth Metrics
Deel reportedly crossed $100 million in monthly revenue for the first time in September, according to company statements cited in the report. Sources indicate the company generates approximately $15 million to $17 million in earnings before interest, taxes, depreciation and amortization. The report states Deel had previously achieved a $1 billion annual revenue run rate in the first quarter and had earmarked up to $500 million for acquisitions this year to bolster growth.
Ongoing Legal Challenges
The funding announcement comes amid ongoing litigation between Deel and rival Rippling. According to the Reuters coverage, Rippling has sued Deel alleging racketeering, trade-secret misappropriation and unfair competition, while Deel filed a defamation countersuit in April, characterizing the claims as a “multi-year smear campaign.” Deel CEO Alex Bouaziz declined to comment on the litigation but termed it as a “frivolous lawsuit,” the report states.
Competitive Landscape and Recent Acquisitions
The payroll technology sector appears increasingly competitive, with reports indicating Rippling raised $450 million in a Series G funding round earlier this year, valuing that company at $16.8 billion. Deel recently acquired London-based competitor Omnipresent in a deal worth approximately $15 million, according to sources familiar with the matter. This acquisition strategy aligns with the company’s stated goal of using the new funding for strategic purchases to accelerate growth.
Industry Context and Future Outlook
The global payroll and HR technology market continues to evolve rapidly as companies seek solutions for managing distributed international teams. Deel’s substantial funding round and ambitious expansion plans reportedly position it as a significant player in this growing sector. According to industry observers, the company’s focus on compliance and automation for multinational business operations could drive further market consolidation as demand for these services increases globally.
This coverage is based on reporting from Reuters and other industry sources. The information presented reflects available public reports and should not be considered as financial advice.
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