Fintech-turned-HR startup Deel has announced a significant milestone, with its annual revenue run rate climbing to $800 million in 2024, representing a 70% growth. This news comes as the company prepares to lay the groundwork for an initial public offering (IPO), which could happen as early as next year, according to reports.
In a move that signals Deel's growing confidence in its business model, the company has sold $300 million in secondary shares to General Catalyst and an unnamed "sovereign investor," later reported to be Mubadala Investment Company, the sovereign wealth fund of Abu Dhabi. This secondary sale provides an exit for early investors, while also bolstering Deel's valuation to $12.6 billion, up from $12 billion in May 2022.
Deel's business model, which focuses on helping companies globally hire, manage, and pay employees remotely, has seemingly resonated with investors. The company's growth trajectory, coupled with its plans to go public, underscores the increasing importance of fintech and HR technology in the modern business landscape.
It's worth noting that Deel's IPO plans have been in the works for some time. In February, the company told TechCrunch that an IPO would likely happen "in the 2025/2026 timeframe." However, with the latest reports suggesting an IPO could happen as early as next year, Deel appears to be accelerating its plans.
In other news, Deel has recently filed a motion asking a Florida court to dismiss a lawsuit that charged the company with enabling money laundering. While the outcome of this lawsuit remains uncertain, Deel's focus on growth and expansion suggests that the company is committed to moving forward despite these challenges.
The implications of Deel's growth and IPO plans are far-reaching, with potential consequences for the fintech and HR technology industries as a whole. As Deel continues to expand its services and reach new customers, it's likely that other companies will take note and adapt their own business strategies accordingly. With its sights set on going public, Deel is poised to make a significant impact on the tech landscape in the years to come.
As the fintech and HR technology sectors continue to evolve, Deel's story serves as a testament to the power of innovation and adaptability. With its unique business model and impressive growth trajectory, Deel is well-positioned to make a lasting impact on the industry and beyond.