Deel secures USD17.3b valuation amid Rippling spying scandal
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The news: Human resources software startup Deel has raised USD300 million ($461.37 million) in a new fundraise, despite being embroiled in a headline-snatching scandal earlier this year.
The numbers: The raise, led by Ribbit Capital and including Andreessen Horowitz and Coatue Management, values the company at USD17.3 billion.
Deel was valued at USD12.6 billion in April this year when General Catalyst and Mubadala, Abu Dhabi’s sovereign wealth fund, bought USD300 million in shares from some early investors in a secondary transaction.
The context: In March, Deel rival Rippling dramatically filed a lawsuit accusing Deel Chief Executive Officer Alex Bouaziz of hiring a Rippling employee to spy on the company. Deel then returned fire by filing its own lawsuit, which accused Rippling of defamation.
The controversy has not scared investors away from either company, with Rippling raising USD450 million at a USD16.8 billion valuation in May from investors including Goldman Sachs and Baillie Gifford. Deel and Rippling share a backer in Coatue.
“We have been profitable for three years, revenue crossed USD100 million for the first time in September and we make circa USD15 million to USD17 million in Ebitda [earnings before interest, taxes, depreciation and amortisation],” Alex Bouaziz, CEO at Deel, told the FT. “That’s a 70growth rate, not bad.”
