Deel CEO Alex Bouaziz
Start-up Deel is confident that more tech companies are looking for talent abroad as many continue to hire remotely.
A San Francisco-based payments and software company announced a $ 425 million Series D funding round on Monday, raising its valuation to $ 5.5 billion. The latest funding was led by Coatue with the participation of Altimeter Capital, Andreessen Horowitz and Spark Capital.
Deel allows businesses to hire, hire, and pay for employees in different countries without having an office in the area. Handle behind-the-scenes tasks such as payroll, benefits, and tax compliance, and make money through your subscription model. The startup currently works in more than 150 countries with around 4,500 companies, including Coinbase, Intercom and Shopify.
Deel CEO and co-founder Alex Bouaziz said the company’s revenues increased 20-fold year-over-year, helped by scrambling remote workers onboard and fighting tech companies to find talent. Told.
“During this period, everyone knew that with the right tools, you wouldn’t have to hire within a 20-mile radius,” Buaziz told CNBC in a telephone interview. “The way of thinking has really changed.”
Technology companies have been pushing back to the office for months, and many are moving to a completely remote model. Coinbase is one of the new remote-first companies, but Facebook, Twitter, Stripe and others offer more flexibility and the option to work from home. Still, most remote roles lead to wage cuts if employees choose cheaper cities. According to a recent KPMG survey, an estimated 25% to 30% of the world’s workforce will work from home by 2022.
Bouaziz also pointed to the infamous and highly competitive labor market for tech companies, especially engineers. The average engineering salary in San Francisco is $ 124,000, according to Indeed.com data. He said technology companies are increasingly hiring in countries such as Brazil, Ukraine and Nigeria.
“Currently, companies can’t really afford to buy some of the Bay Area engineers, so they have to look elsewhere,” Buaziz said. “If anything, it helps companies have a larger pool of talent.”
Lucas Swisher, Coatue’s general partner and one of Deel’s early investors, empowers the platform to bring “overwhelming and complex” processes into streamlined tools to make global employment simpler. He said he was drawn in. Deel’s CEO said the company is moving at a pace of $ 50 million in revenue this year. Bouaziz does not comment on profitability, but said the company is “cash efficient.”
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Startup Deel is confident that Coinbase, Shopify and others will continue to hire globally to find tech talent.
Source link Startup Deel is confident that Coinbase, Shopify and others will continue to hire globally to find tech talent.