Throughout the cooling of the tech sector, the news went unnoticed. Deel, the start-up that specializes in wage portage has just raised $ 50 million, according to Axios. That’s worth $ 12 billion. The company, which was jointly founded in 2018 by Alex Bouaziz, a Frenchman who moved to the United States, has seen its growth due to the rise of hybrid employment.
“It’s just the beginning,” said “Echos” its co-founder Shuo Wang. “We are at the beginning of a massive trend, which is accelerating. We are faced with a demand that is rapidly rising. Companies are increasingly looking to recruit around the world,” he said.
Last month, the startup announced that it had reached $ 100 million in annual recurring revenue. At the beginning of 2021, the company will have only $ 4 million in annual revenue, according to TechCrunch. On Twitter the startup pointed out that this growth was superior to Slack and Shopify in their early days.
Hybrid work boom
Deel found himself at the crossroads of two major trends. Many companies have difficulty recruiting qualified staff, forcing them to double their creativity to take the best available profiles and suit their needs. And they operate more and more in a hybrid way, with part of the teams working remotely. This makes it easier to bring together new recruits based overseas.
The pandemic played a role, prompting many companies to switch to hybrid working. But this is, according to Shuo Wang, a deeper trend. “We’re seeing a lot of interest from tech companies, but also from more traditional sectors,” the co-founder explains. This applies to both SMEs and large companies. In ten years, the fact of recruiting part of teams overseas will “become commonplace”, he assured.
7,000 customers, 90 countries
In the meantime, the start-up numbers are impressive. In less than four years, it has raised $ 629 million, which should add $ 50 million from its last fundraiser. It recruited 1,000 employees, spread across more than 90 countries. “We’re a company where everything is done remotely,” Shuo Wang said.
The start-up now has 7,000 companies among its customers. These include, Coinbase, Dropbox and Shopify, TechCrunch says. The latter has recruited employees in more than 150 countries thanks to Deel, the co-founder assured. The start-up assumes legal responsibility for each recruitment. And responsible for drafting 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 directly hired by the start-up, while continuing to work for the company to use its services. Deel offers solutions to pay its employees “in one click”, according to its website. This makes it possible to recruit employees, but also contractors for specific missions. Its customers pay a monthly subscription, which depends on the number of contracts signed.
Wage portage solutions are not new, and many start-ups are looking to position themselves in this growing market. But Shuo Wang said he was calm in the face of competition. “There are a lot of small and medium sized companies that are in this market,” he admits. But Deel is the fastest growing and offers the most comprehensive platform in terms of products and services. »
Its priority for the next few years: to continue to grow at full speed, to maintain its competitive edge. This means “launching in other countries”, but “to add more services” to improve the experience of employees, Shuo Wang said. The next step might 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 moved from China to the United States to study at MIT, Deel’s solutions could ultimately change the global labor market. “If my parents could work from China someday, hired by American companies, they would do without hesitation, because all my family is there. The companies also have an interest in offering of potential recruits the possibility to work remotely, from their home country, he believes.