In the world of HR technology startups, there are Davids and Goliaths. Diehl and Rippling are Goliaths, both raising millions of dollars in venture capital. But Remofirst, which just secured $25 million in Series A funding, is proving to be a very valuable asset.
Remofirst, an HR technology startup, advertises that it hires its clients' employees and contractors on its clients' behalf in more than 180 countries, without the need for those companies to set up local subsidiaries. According to CEO and co-founder Nurasyl Serik, this will help these companies save both time and money, while also helping to strengthen compliance.
By acting as an employer of record, Remofirst operates an entity that hires workers on behalf of companies and handles “all things related to hiring people within companies,” Serik said. . This includes managing payroll, taxes, employment, and compliance, providing work equipment, as well as helping companies develop competitive compensation plans and providing health, dental, and vision insurance. will appear.
Remofirst said it has grown 10x in annual recurring revenue (ARR) since raising a $14.1 million seed round in September 2022, but did not provide specific revenue numbers.
Serik said this revenue growth helped the company secure three term sheets in four weeks and secure $25 million in Series A funding. European VC firm Octopus Ventures led the latest funding, with participation from existing backers QED, Mouro Capital and Counterpart Ventures.
The company declined to disclose the valuation, saying only that it was a “significantly accretive round.”
Although it has raised much less money than competitors Deal (which raised more than $600 million with a final valuation of $12 billion) and Rippling (which raised $500 million in 2023 alone), RemoFirst Undaunted, we believe we can differentiate ourselves in several ways. One thing he does, Serik argues, is that it is much more affordable.
Co-founders Nurasyl Serik and Volodymyr Fedoriv Image credit: Remofirst
The company spoke to potential customers early on and kept hearing that cost was a barrier: “We have a great solution, but it's prohibitively expensive.''
Remofirst says its pricing starts at $199 per month for employees and $25 per month for contractors, hundreds of dollars cheaper than competitors Deel and Ripling.
For example, according to Deel's website, pricing starts at $599 per month for employees and $49 per month for contractors.
How Remofirst is able to offer such low rates lies in its “secret sauce,” Selik said. “How we approach things differently is all on the back end,” he said. “We also no longer have to spend months and tens of thousands of dollars setting up a local company to hire employees in other countries.” Volodymyr Fedoriv, COO and Co-Founder of Remofirst told TechCrunch that while most competitors choose to set up their own business entities, Remofirst aims to “ensure” compliance by partnering with domestic legal “experts.” He said he is doing so.
Although Remofirst primarily aims to serve small and medium-sized businesses, the company claims it can work with customers of all sizes. We currently have thousands of customers including Zocdoc, the World Health Organization, and Mastercard.
“We believe small businesses are an underserved segment of the market,” Selik told TechCrunch.
Nick Sand, president of Octopus Ventures, told TechCrunch in an email that his company believes “Remofirst offers an exceptional level of service at a very affordable price.” This means we can serve a wider range of businesses than similar services. ”
The company will use part of the new funding to “significantly expand” its presence in international markets such as the UK.
On March 4, Deal announced it would acquire Payspace, an Africa-based payroll and human resources software and services company, in a deal that would be its largest acquisition to date. It also announced that ARR has exceeded $500 million. Also on Tuesday, UAE-based RemotePass announced it had raised $5.5 million in Series A funding led by Istanbul-based 212 VC.