Deel, a company that has evolved from its fintech roots into a prominent player in the human resources sector, is making significant moves that hint at a possible initial public offering (IPO) on the horizon. The company recently announced impressive financial results, revealing a 70% year-over-year surge in revenue, culminating in an $800 million annual revenue run rate in 2024. Deel specializes in streamlining the complexities of global remote hiring, management, and payroll for businesses of all sizes.
In addition to its strong financial performance, Deel disclosed a substantial $300 million secondary share sale to a group of investors, including General Catalyst and a sovereign wealth fund, later identified by CNBC as Mubadala Investment Company. This secondary sale allows early investors and stakeholders to liquidate a portion of their holdings, potentially signaling increased confidence in the company’s future prospects.
Furthermore, CNBC reported that Deel is actively preparing for a potential IPO as early as next year. This timeline aligns with previous indications from the company, which had suggested a target window of 2025 or 2026 for going public. Deel’s valuation has also seen a modest uptick, rising from $12 billion in May 2022 to $12.6 billion following the secondary sale, according to CNBC.
Deel is currently embroiled in a legal dispute, having filed a motion to dismiss a lawsuit that alleges the company facilitated money laundering activities. The outcome of this legal matter could potentially impact the company’s plans for an IPO.
Deel’s strong revenue growth, coupled with the substantial secondary share sale and reported IPO preparations, suggest that the company is positioning itself for a significant milestone in its development. The company’s evolution from fintech to HR, along with its focus on global remote work solutions, has resonated with investors and businesses alike. However, the ongoing legal challenge remains a factor to watch as Deel navigates its path towards a potential public listing.