Deel valuation surges fourfold in six months to $5.5 billion, raises another $425 million

Deel, which has developed a global payroll and compliance system, announced on Monday that it has raised $425 million in Series D funding, taking the total amount raised by the company to over $630 million. The latest funding round values the company at $5.5 billion. Deel raised $156 million at a $1.25 billion valuation in April of this year.

The company, co-founded by Israeli Alex Bouaziz and Chinese entrepreneur Shuo Wang, has developed a platform that allows payment to both full-time employees and independent contractors (freelancers), in compliance with the currency and the labor laws in the employee’s country of origin. Deel serves more than 4,500 customers in over 150 countries, including the likes of Coinbase, Intercom and Shopify. Deel’s technology offers payroll, HR, compliance, perks, benefits, and other capabilities needed to hire and manage a global team. With Deel, businesses can hire employees and contractors compliantly without needing a local entity in less than five minutes. Companies can also pay teams in more than 120 currencies.

Since Deel’s inception in 2019, the team has grown from four to 400 employees, with 30 being based in Israel. Since April, the company has hired 280 people worldwide, but only 10 in Israel. Deel operates in a distributed manner, with employees working remotely from 47 different countries.

The new funding round was led by US-based Coatue, with partners Rahul Kishore and Lucas Swisher leading the deal. Several new and existing investors also participated in this round, including Altimeter Capital, Andreessen Horowitz, the YC Continuity Fund, Spark Capital, Greenbay Ventures, Neo, and over 40 of the world’s leading operators.

“The way people work is fundamentally changing. And it’s never going back,” said Deel CEO Alex Bouaziz. “We founded Deel because we didn’t want hiring or payments to prevent businesses from building the best global teams and finding the best global talent. We’re going to keep challenging the norms of how companies operate and continue building tools that shape the future of work.”