While it has been fun for the tech industry to observe rival payroll firms Deel and Rippling sue each other over a corporate espionage scandal, top VCs are apparently not that scared. Del on Thursday announced that it has raised $300 million in a Series E round co-led by leading fintech VC firm Ribbit Capital and Andreessen Horowitz, with participation from existing investors reminiscent of Coatue Management and General Catalyst.
Deel says it has been profitable for three years and has surpassed $1 billion in ARR, including a month – September – that posted $100 million in revenue. Deel’s business model focuses on serving global firms, handling complex currency regulations and employment for distributed international teams. It says it currently serves greater than 35,000 customers and employs greater than 1.5 million employees in greater than 150 countries.
These are the varieties of numbers that attract investment, whether or not there are ongoing lawsuits. (Ripling’s lawsuit filed in California against Deel does not yet have a trial date and is said to be in the discovery phase court records.) Indeed, Ribbit founder Micky Malka and a16z co-founder Ben Horowitz gave Deel their full support in the announcement. In prepared statements, Malka said Ribbit has long been a “fan” of the HR company because it is a “brand that companies trust,” and Horowitz said a16z was “impressed” with Deel’s work to build the “best HR platform” for global firms.
It’s value noting that the lawsuits have not slowed down Rippling’s fundraising efforts either. In May, Rippling raised a $450 million Series G round at a $16.8 billion valuation.