In six years, Deel has gone from a fledgling idea around paying freelancers to a complete software suite covering all international HR needs. A rare trajectory in a sector dominated by established players, built on a succession of pivots dictated by customer usage.
Franco-American Alex Bouaziz, co-founder and CEO of Deel, recounts a genesis marked by trial and error. “Shuo and I started about six years ago, and we were struggling to make $10,000. I had never told it before, the beginning was so embarrassing. » At the time, the objective was simple: to secure the payment of independent workers. “Our initial idea was to ensure that freelancers get paid and don’t disappear after delivering their work. We had created an escrow platform where money was held in advance and released automatically with each milestone. » But the market remains indifferent, forcing the founders to improvise. “We have entered pivot hell. I became the collection agency for freelancers using our product, sending threatening legal letters to companies. We got $7,000 back on a $15,000 bill after my email. The freelancer gave us $1,000. It was a huge victory. »
The transformation begins when a user diverts the solution from its initial use. “I like the fact of tying contracts to payments and making payment as the work progresses. Additionally, you provide me with ready-made contracts and a way to pay internationally. » Deel listens and turns.
“We listened to the customer and pivoted to a contract management product. » Ten days later, the company had 290 contractors and $5,000 in monthly revenue. “In ten days, at Demo Day, we had 290 contractors and $5,000 in monthly revenue. This business then exceeded 100 million. »
This constant listening to users becomes the heart of the model. “During that time, I had hundreds of customers on WhatsApp and Slack, and still do. Our customers told us what their most important problems were. We listened. » From these exchanges comes the extension of the model: firstly theEmployer of Recordwhere Deel takes care of payroll and employee compliance on behalf of corporate clients. “We launched Employer of Record: Deel employs people on its behalf on behalf of the client and manages all compliance. It has become a business with over $300 million in ARR. » Then a complete system of Payroll automated. “We then launched Payroll, a system that automatically calculates taxes and pays the correct take-home pay to employees around the world. It has become a $150 million-plus business. »
Entirely distributed since its creation, the company faced its own organizational limits.
“Deel has always been a 100% remote company, and as we’ve grown, it’s become clear to us what issues companies face when managing global teams. So we built Deel for Deel. » In eighteen months, Deel launched six new products, crossed the $1 billion ARR mark, and recorded its first month of $100 million in revenue in September.
“In the last eighteen months, we launched six new products, reached 1 billion ARR and September was our first month at $100 million in revenue. »
Deel’s journey illustrates the ability of a company born under constraint to build a coherent and integrated software architecture from weak signals. Bouaziz sums it up simply: “All good things start small and fragile. »
Deel raised $300 million (around €257 million) in its latest funding round, led by Ribbit Capital with the participation of Coatue Management And Andreessen Horowitzbringing its valuation to $17.3 billion (around 14.7 billion euros). Founded in 2019 by Alex Bouaziz And Shuo Wangthe company is today one of the world leaders in HR SaaS, with annual recurring revenue exceeding $1 billion and profitability maintained for three years.
