Remote work revolution helps Deel reach $295M in ARR.
The ‘global HR platform’ is EBITDA positive, confirming a $12B valuation.
Deel, a Fintech-turned-HR company, announced it would reach $295 million in annual recurring revenue (ARR) by the end of 2022. This is a significant increase from the $57 million ARR achieved at the end of 2021, representing a growth of 417.5%. The company attributes this success to its EOR (Employer of Record) business and the macro environment that has shifted towards remote work.
Deel’s CEO, Alex Bouaziz, also confirmed the company’s valuation of $12 billion, which was reported in May of this year. He also shared that Deel has been profitable since September and has an impressive profit margin of 85%.
Deel was founded 2019 as an EOR to allow businesses to hire employees and contractors in other countries in less than five minutes. Since then, the company has evolved into a full-stack “truly global HR platform” that offers various services, including payroll and equity management. The company has over 15,000 customers and has paid out $5 billion in salaries to hundreds of thousands of workers.
In addition to its impressive growth, Deel also announced new offerings and expansions. The company is now offering a new primary product, Deel HR, free for businesses with fewer than 200 people. It also launched Deel Engage, an HR Slack plugin designed to help distributed teams improve employee engagement and culture. The company also announced the expansion of its global payroll offering, starting with the US, by building its “first in-house payroll engine” to help companies hire globally without opening legal entities.
The global HR space has seen increased competition recently, with companies like Rippling offering similar services. However, Deel’s impressive growth, profitability, and new offerings and expansions position the company well in the market.