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Alex Bouaziz, CEO and co -founder of Deel, on the stage of the Collision 2022 conference at the Enercare Center in Toronto, Canada.
Vaughn Ridley | Sportsfile | Getty images
The human resources software firm said that it has reached an annual income execution rate of $ 800 million and is increasing preparations to make public with a view to the OPI from next year.
The startup, which aims to simplify the process of contracting, payment and management of employees remotely, told CNBC that it reached the milestone after an increase of 70% year after year in income in December. An income execution rate is an estimate of the future annual income of a company, extrapolated from a monthly data point.
Deel has also added to its capitalization table with two new important shareholders after a sale of secondary shares of $ 300 million made last year.
The company said that the Catalyst General and an unidentified Sovereign Sobreign fund, which CNBC understands that Mubadala Investment Company, the Sovereign Fund of Richness of Abu Dhabi, joined the round as new investors.
It comes after Deel in 2022 reached an assessment of $ 12 billion. After the transaction of secondary shares, the company’s valuation increased to $ 12.6 billion, according to two sources familiar with the matter, which did not want to be appointed due to the sensitivity of the matter.
In an interview with CNBC, the CEO and co -founder of Deel, Alex Bouaziz, said the company is continuously developing financial audits, compliance and infrastructure processes, since it seems to guarantee that it is in a good position for OPI.
“We are preparing to leave, potentially next year or a little later,” Bouaziz told CNBC, adding that the firm recently added two new members of the Board, including the former Illumina CEO, Francis Desouza, and the Former Financial Director of Cupa, Todd Ford. “We believe we have the right reasons to make public.”
Bouaziz said that a public list could help the company to follow its mission to build a recognizable brand in human resources and payroll software.
“When it comes to human resources and payroll, I never felt how someone captured the essence of a great brand,” he said. “No one really (builds) a brand that you feel resonates with people.”
“This is really what we want to build. That is, I think, a large part of the experience we can contribute to people. Being a public company can reinforce that feeling, be part of history and be part of the business,” Bouaziz added .
The CEO said that Deel has no pressure from his financial sponsors to make public despite their large size. The company currently has around 5,000 employees worldwide.
Founded in 2019, Deel is a platform that helps companies with human resources services such as incorporation, fulfillment, performance, payroll and immigration support. It became popular during Covid-19 closures in 2020 and 2021, which promoted the tendency to hire personnel remotely.
Jeannette Zu Fürstenberg, managing director of General Catalyst, said that “it focuses on Deel in allowing large companies to navigate the complexities of a global workforce to perfectly adjust to our mission of supporting bold ideas that create a lasting value.”
Zu Fürstenberg previously supported Deel in an investment of seeds when he was with the European Ventilation Capital Foundation La Famiglia, which merged with Catalyst General in October 2023.
Motion to dismiss the demand ‘without foundation’
In the context of financial milestones and progress towards an OPI, Deel currently faces a litigation about the statements that facilitated money laundering transactions.
Last month, Deel received a lawsuit in a Florida court that alleged that he processed payments without appropriate licenses and enabled money laundering in relation to illegal payment transactions for a value of at least $ 2.27 million made on behalf of a former former former Client, Ventures Capital arises. It also accuses Deel of facilitating payments to Russia in violation of US sanctions.
Deel denies the statements strongly and has shot with a motion to dismiss the demand, describing it as “full of accusations without foundation, gross inaccuracies, conjectures and free falsehoods.”
Deel also claimed that the demand was part of a “coordinated effort of a great investor in the main competitor of Deel who sought to tarnish Deel’s star reputation.”
The plaintiff’s lawyer, Thomas Gray, is appointed as Waveling Insurance Services incorporator in a presentation of the State Department of Florida. Waveling Insurance Services is now known as Ripple Insurance Services, which is a subsidiary of the Human Resources and Payroll Software firm Rippleing. Gray is As reported, an investor in wavesAccording to the Florida newspaper, Naples Daily News, although CNBC could not confirm this.
Neither Thomas Gray nor Rippleing were immediately available to comment when CNBC contacted.
Bouaziz told CNBC that he feels “quite safe” about the possibilities of dismissing the demand.
