Deel Secures $300 Million Funding, Valuation Reaches $17 Billion Amid Espionage Allegations
Global payroll and compliance platform Deel completed a $300 million funding round yesterday, boosting its valuation to $17 billion, despite facing accusations of corporate espionage.
The funding round was led by new investor Ribbit Capital, with participation from existing backers Coatue Management and Andreessen Horowitz. Deel’s CEO, Alex Bouaziz, stated the company has been profitable for three years, exceeding $100 million in revenue in September and generating approximately $15 to $17 million in EBITDA. “That’s a 70 per cent growth rate, not bad,” Bouaziz said. This latest investment follows a secondary transaction earlier this year that valued the company at $12.6 billion. The company’s rapid growth since its founding in 2019 has disrupted the workforce management software industry.
The funding comes as Deel defends itself against allegations made by competitor Rippling, accusing Bouaziz and his father of orchestrating corporate espionage. Rippling alleges Deel recruited an employee to share confidential information, a claim Bouaziz dismisses as a “frivolous lawsuit, a distraction.” Deel has countersued, alleging Rippling is attempting to damage its reputation. These legal battles highlight the intense competition within the increasingly important human resources technology sector, where companies are vying for dominance in managing remote and international workforces – a trend accelerated by the rise of remote work.
Investors, however, appear unconcerned by the litigation. Micky Malka, founder of Ribbit, emphasized the company’s revenue growth, stating, “What they are showing with their revenue is the value of their service.” Deel plans to use the new capital for further acquisitions – having already completed 13 – improvements to its payroll and banking software, and investment in artificial intelligence products. Andreessen Horowitz partner Anish Acharya indicated the company is on a trajectory toward a potential public offering, stating Deel is “a public market company in the very near term.” You can learn more about Deel’s services on their website.
Deel officials stated they will continue to address the ongoing litigation while focusing on expansion and innovation.
