Payroll company Deel becomes the next FinTech unicorn

Payroll FinTech company Deel has closed its Series C round on $156m, which put its valuation at $1.2bn and makes it the latest unicorn.

The round was co-led by YC Continuity Fund and existing Deel backers Andreessen Horowitz and Spark Capital. There were also a number of angel investors to contribute to the funding round, including Dara Khosrowshahi, Lachy Groom, Jeffrey Katzenberg, Jeff Wilke, and Anthony Schiller.

This capital injection will help Deel with its international expansion efforts by tapping into new markets and establishing 80 new Deel-owned entities around the world in 2021.

The FinTech also hopes to hire more staff across the world and expand its product offering.

Founded in 2018 by Alex Bouaziz and Shuo Wang, the company empowers businesses to hire anyone, anywhere and in a compliant manner. Its technology can onboard international employees and contractors within five minutes.

It claims the platform was in a prime position to help companies adjust to the shift in the working and hiring norms caused by the pandemic.

In 2020, the company’s revenue grew by 20-times and is now supporting 180 businesses around the world.

Deel CEO Alex Bouaziz said, “We built Deel to be the solution for companies wanting to hire anywhere around the world, from Argentina to Zambia.

“We set out to solve a problem that the majority of businesses found inherently daunting. With Deel, we were able to consolidate everything into a product people trust and enjoy using to hire, to pay, and to give their global team members the best experience possible. Now with this third sizable investment, we can’t wait to open even more doors for businesses, employees, and contractors around the world.”

As part of the deal, YC Continuity Fund managing director Ali Rowghani has joined the Deel board of directors.

Deel previously raised $30m in its Series B round back in September 2020 and $14m in its Series A in May 2020.

Earlier in the week, subscription management company Chargebee reached the unicorn status after a $125m investment puts its valuation at $1.4bn.

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