What's Happening?
Deel, a San Francisco-based payroll and human resources platform, has successfully raised $300 million in a Series E funding round, elevating its valuation to $17.3 billion. The funding round was co-led
by Ribbit Capital, Andreessen Horowitz, and Coatue Management. Deel's CEO, Alex Bouaziz, announced that the company achieved a significant milestone by surpassing $100 million in monthly revenue for the first time in September 2025. The company also reported generating between $15 million and $17 million in earnings before interest, taxes, depreciation, and amortization (EBITDA). Deel has been profitable for three years and exceeded $1 billion in annual recurring revenue in the first quarter of 2025. The newly acquired capital will be utilized for acquisitions, enhancing payroll and banking software, and investing in artificial intelligence products.
Why It's Important?
Deel's rapid growth and substantial funding highlight the increasing demand for innovative payroll and human resources solutions, particularly in a post-pandemic business environment. The company's ability to achieve profitability and significant revenue milestones in a short period underscores its competitive edge in the payroll platform market. This development is crucial for U.S. businesses seeking efficient and scalable HR solutions, as Deel's expansion could lead to more advanced and cost-effective services. The investment in artificial intelligence products also suggests a shift towards more automated and intelligent HR processes, potentially transforming how companies manage their workforce globally.
What's Next?
With the new funding, Deel plans to focus on strategic acquisitions and technological advancements, particularly in artificial intelligence. This could lead to enhanced service offerings and a stronger market position. The company's ongoing litigation with Rippling over espionage allegations may also influence its strategic decisions and market dynamics. Stakeholders, including investors and clients, will likely monitor Deel's expansion efforts and legal proceedings closely, as these factors could impact the company's growth trajectory and reputation.
