HR unicorn Deel prepares for IPO as soon as 2026 after revenue jump

cnbc.com:

Human resources software firm Deel said it has hit an annual revenue run rate of $800 million and is ramping up preparations to go public with a view to IPO as early as next year.

The startup, which aims to simplify the process of hiring, paying and managing employees remotely, told CNBC that it hit the milestone after a 70% year-over-year bump in revenue in December. A revenue run rate is an estimation of a company's future annual revenue, extrapolated from a monthly data point.

Deel has also added to its capitalization table with two new major shareholders following a $300 million secondary share sale conducted last year.

The company said that General Catalyst and an unnamed sovereign wealth fund — which CNBC understands is Mubadala Investment Company, the sovereign wealth fund of Abu Dhabi — joined the round as new investors.

It comes after Deel in 2022 hit a $12 billion valuation. Following the secondary share transaction, the company's valuation was boosted to $12.6 billion, according to two sources familiar with the matter, who did not want to be named due to the sensitivity of the matter.

In an interview with CNBC, Deel CEO and co-founder Alex Bouaziz said the company is developing robust financial audits, compliance processes and infrastructure as it looks to ensure it's in a good position to IPO.

«We are getting ready to go out, potentially next year or a bit later,» Bouaziz told CNBC, adding that the firm recently added two new board members including former Illumina CEO Francis deSouza and former Coupa Chief Financial Officer Todd Ford. «We believe we have the right reasons to go public.»

Bouaziz said that a public listing could help the firm further along on its mission to build a recognizable brand in HR and