Stock Groups

Start-up Deel bets that Coinbase, Shopify and others will keep hiring globally to find tech talent

[ad_1]

Alex Bouaziz CEO Deel

Deel

Deel believes that tech companies may continue to seek out talent from overseas, as it is a growing trend.

On Monday, the San Francisco payments and software company Announced a $425 Million Series D Funding Round. This brings its value to $5.5 Billion. Coatue led the latest round of financing, with contributions from Altimeter Capital (Andreessen Horowitz), Spark Capital and other investors.

Deel makes it possible for companies to employ, onboard, pay and manage employees from different countries. The company handles the behind-the scenes tasks such as payroll, tax compliance and benefits. It also makes money via a subscription model. The company now operates in over 150 countries, with approximately 4500 clients. CoinbaseIntercom and Shopify

Alex Bouaziz (CEO and co-founder of Deel) said that the company’s revenue increased by 20% year over year. This was due to a rush to hire remote workers as well as a struggle for talent from tech companies.

Bouaziz said that during the interview, “Everyone has realized that it doesn’t matter if you live within a 20 mile radius – as long as your tools are right” to CNBC. The mindset has changed.

Many tech companies are shifting to remote models, and have delayed their return to office for several months. Coinbase is one of the newcomers. remoteCompanies that are ‘first’ Facebook TwitterStripe, and other companies offer greater flexibility and the possibility to work remotely. Remote roles can lead to a reduction in pay, even if they are located in less expensive cities. A KPMG survey has shown that 25%- 30% of the world’s workforce will work remotely by 2022.

Bouaziz also pointed to a notoriously competitive labor market for tech companies — especially for engineers. According to Indeed.com data, the average engineer salary in San Francisco is $124,000. He said that tech companies have been hiring more in places like Nigeria, Ukraine, and Brazil.

Bouaziz stated that companies can’t afford to hire engineers from the Bay Area at the moment, and they have to find other options. It’s actually helping businesses to have more talent.

Lucas Swisher is a general partner of Coatue, and was one of Deel’s first investors. He said that the company was attracted by its ability to transform a “overwhelmingly complicated” process and make it more user-friendly. Deel’s CEO stated that the company is on track to make $50 million this year. Bouaziz, while he wouldn’t comment on profitability of the business, said that it was cash efficient.

Register to CNBC PROFor exclusive insight, analysis and live broadcasts of business day programs from all over the globe.

[ad_2]