Deel, the fast-growing HR and payroll software company, has raised $300 million in fresh funding, pushing its valuation to $17.3 billion. The round was led by Ribbit Capital, with participation from Andreessen Horowitz, Coatue Management, General Catalyst, and Green Bay Ventures.
The New York-based company’s raise comes at a time when the HR software sector is showing new life. Global HR tech startups have already secured about $1.9 billion in venture funding through mid-September, according to Crunchbase data, which nearly matches the $2 billion raised during all of 2024. U.S.-based HR software startups contributed $1.2 billion of that total, slightly up from last year’s $1.1 billion.
While those figures are still far below 2021’s record $10.5 billion, the rebound highlights a renewed wave of investor confidence in workplace technology. The growing focus on automation, compliance, and AI-driven tools appears to be attracting fresh capital to the space.
Deel’s new funding also comes in the wake of a high-profile corporate espionage scandal involving its rival Rippling. Despite that controversy, Rippling raised $450 million earlier this year at a $16.8 billion valuation, underscoring the sector’s resilience. For Deel, investors seem more focused on the company’s performance than on the drama.
The startup recently reported $100 million in monthly revenue for the first time, marking its third straight year of profitability. Earlier this year, Deel also crossed the $1 billion mark in annual recurring revenue and now serves more than 37,000 businesses worldwide. Its platform processes over $22 billion in payroll annually, further cementing its leadership in the remote work and HR automation space.
Since its founding in 2019, Deel has raised nearly $1.3 billion from investors. The latest infusion will go toward expanding its AI-powered automation capabilities, pursuing strategic acquisitions, and extending its global footprint to more than 100 countries by 2029.
Ribbit Capital founder Micky Malka said that Deel’s global-first model gives it a unique edge in creating products for companies expanding internationally. He described the company’s potential as “limitless,” highlighting its strong leadership and long-term vision.
Deel’s rise mirrors the broader trend of investors returning to HR tech after a period of slowdown. The company’s continued profitability and focus on automation are proving that efficient, AI-driven HR systems are no longer just a pandemic trend but a lasting foundation for the future of work. Even as the industry shakes off its controversies, Deel’s growth story suggests that the appetite for innovation in payroll and workforce technology is only getting stronger.
