Deel Acquires Africas Payscale Crossing 500 Million in Annual Recurring Revenue

On Tuesday, HR startup Deel announced its acquisition of African-based payroll and HR software and services company PaySpace in a deal that marks its largest acquisition to date. This move comes just days after Deel revealed it had acquired Munich-based Zavvy, an AI-based ‘people development’ startup building tools for personalized career progression, training, and performance management.

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Acquisition Details

The financial terms of the PaySpace acquisition were not disclosed. However, this deal is significant, as PaySpace boasts over 14,000 customers utilizing its software and services in 44 countries across Europe, Latin America, the Middle East, and Africa. Clients include multinationals such as Heineken, Coca-Cola Beverages, and Puma Sports SA.

PaySpace: A Bootstrapped Success Story

PaySpace has been on a remarkable journey since its inception. The company’s founders bootstrapped their venture, demonstrating a dedication to innovation and resilience in the face of challenges. Their commitment to providing seamless HR and payroll solutions has earned them a reputation as industry leaders.

Deel’s Acquisition Strategy

Deel’s acquisition strategy is clear: they aim to consolidate the market by acquiring innovative companies that share their vision for modernizing HR and payroll management. By doing so, Deel seeks to provide an unparalleled level of service and support to its growing client base.

Impact on the Market

This deal highlights a notable trend in the industry over the past 18 months: the third acquisition involving Africa-founded companies and global counterparts. Other recent examples include BioNTech’s acquisition of InstaDeep, Medius’ purchase of Expensya, and Stripe’s acquisition of Paystack.

Deel’s Growing Client Base

Beyond specific numbers, the deal will effectively grow Deel’s customer count fairly significantly. Some clients may overlap, but the combination will bring a substantial increase in market share for the company.

A New Era for HR and Payroll Management

The acquisition of PaySpace marks an exciting new chapter for both companies. As they combine their expertise, they are poised to revolutionize the way businesses manage their human resources and payroll needs. This deal will undoubtedly have a lasting impact on the industry, as Deel continues its mission to modernize HR management.

The Future of Fintech in Africa

This acquisition is also notable for highlighting the growing importance of fintech in Africa. The continent has seen a surge in innovation, with companies like PaySpace and others pushing the boundaries of what is possible in terms of financial technology.

Conclusion

Deel’s acquisition of PaySpace marks an important milestone in its journey to become a leading HR and payroll management platform. As the company continues to expand its offerings and client base, it will be exciting to see how they shape the future of HR and fintech in Africa and beyond.

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