You are currently viewing Deel Eyes IPO by 2026 Amid Impressive Revenue Growth and New Investors
Image is used for information purposes only. Picture Credit : https://habitual-occasion.flywheelsites.com/

Deel Eyes IPO by 2026 Amid Impressive Revenue Growth and New Investors

Prime Highlights: 

Deel achieved an annual revenue run rate of $800 million, marking a 70% year-over-year increase. 

The company is preparing for a potential IPO as early as 2026, with robust financial audits and compliance processes in place. 

Key Background: 

Deel, a rapidly growing human resources (HR) software startup, is setting the stage for a potential initial public offering (IPO) by 2026, following a significant surge in its revenue. The company reported a $800 million annual revenue run rate, driven by a remarkable 70% year-over-year growth in December. Deel’s platform simplifies remote hiring, payroll management, compliance, and employee onboarding, gaining notable traction amid the global shift towards remote work during the COVID-19 pandemic. 

To further strengthen its financial position ahead of the IPO, Deel added General Catalyst and Mubadala Investment Company, the sovereign wealth fund of Abu Dhabi, to its shareholder base through a $300 million secondary share sale. This strategic investment boosted Deel’s valuation to $12.6 billion, an increase from its $12 billion valuation in 2022. CEO and co-founder Alex Bouaziz emphasized that Deel is actively enhancing its financial audits, compliance processes, and overall infrastructure to prepare for a public listing. 

The company’s growth trajectory has been complemented by the appointment of two new board members, including Francis deSouza, former CEO of Illumina, and Todd Ford, former CFO of Coupa. These additions reflect Deel’s focus on building a strong foundation for long-term growth and reinforcing its brand in the HR and payroll software industry. 

Although Deel is under no immediate pressure from investors to go public, Bouaziz highlighted that a listing would help solidify Deel’s position as a leading HR brand. The company’s mission is to establish a recognizable identity in HR services, an area he believes remains underdeveloped in terms of brand appeal. However, Deel’s journey to the public market is not without challenges. The company is currently facing a lawsuit in Florida, which alleges that Deel facilitated illegal payments and money laundering. Deel has strongly denied the accusations and is seeking to dismiss the lawsuit, labeling the claims as baseless. Despite this legal challenge, Bouaziz remains confident about Deel’s path forward, as it prepares for its next phase of growth.