Deel Acquires South African HRTech company PaySpace as It Expands Foothold to Africa
San Francisco-based HR and payroll company Deel has acquired PaySpace, a South African HRTech company, for an undisclosed sum. Alongside acquiring PaySpace, Deel announced that it has organically reached $500 million in annual recurring revenue within five years of its founding.
The acquisition of PaySpace represents a significant milestone for Deel’s customers, offering them unparalleled global coverage and enhanced payroll capabilities for their teams. With this development, coupled with the startup acquisition of APAC payroll provider PayGroup in 2022, Deel now stands as one of the most comprehensive HR and payroll solutions available in the market.
In a written statement, PaySpace director Clyde van Wyk said,
“Like PaySpace, Deel strives to evolve its offering through disruption. We set out to modernize the payroll industry, which was burdened by manual processes and stringent legislative and compliance requirements, much like Deel revolutionized global hiring.”
Africa-based PaySpace boasts over 14,000 customers utilizing its software and services in 44 countries across Europe, Latin America, the Middle East and Africa. Customers include multinationals across various industries such as Heineken, Coca-Cola Beverages and Puma Sports SA. For Deel, a $12 billion HR startup facilitating talent hiring, payment, and management in over 70 countries, the acquisition offers an opportunity to strengthen its footprint in Africa.
Deel now owns over 150 entities globally and manages in-house, in-country payroll teams in over 70 countries, in addition to offering employer of record, contractor, immigration, HRIS, and performance management services. For its part, Deel is making a big push into the enterprise, something it believes PaySpace will also help with.
