Remofirst Raises $25M to Shake Up HR Tech Space
In the world of HR tech startups, there are the Davids and the Goliaths. Deel and Rippling are the Goliaths, both having raised millions of dollars in venture capital. But Remofirst, which just secured $25 million in Series A funding, is proving to be a very worthy David.
Remofirst, a revolutionary HR tech startup, has made waves with its unique approach to hiring employees and contractors in over 180 countries. CEO and co-founder Nurasyl Serik explains that the company’s Employer of Record model allows them to handle all aspects of hiring for businesses, from payroll and taxes to compliance and insurance.
Thanks to its innovative services, Remofirst has seen significant growth, boasting a 10x increase in annual recurring revenue since its $14.1 million seed round in September 2022. This success has attracted multiple investors, leading to the recent $25 million Series A funding round led by European VC firm Octopus Ventures. Other notable investors include QED, Mouro Capital, and Counterpart Ventures.
“We are delighted to have Octopus as an investor because of their strong background and network, which aligns very well with our goals and future objectives,” says Serik.
Remofirst maintains that its valuation is a “strong up round,” and while it may have raised less capital than its competitors Deel and Rippling, the company remains confident in its unique approach. Serik notes that one of the things that set Remofirst apart is its affordability, with fees starting at $199 per month for an employee and $25 per month for a contractor. In comparison, Deel’s fees start at $599 and Rippling’s at $500.
“Cost has always been a barrier for many companies when it comes to HR tech solutions. We aim to provide an exceptional level of service at a much more affordable price, making it accessible to a broader range of companies,” says Serik.
Part of Remofirst’s cost-effective strategy is partnering with in-country legal experts to ensure compliance, rather than setting up entities themselves like many of its competitors. This approach also enables the company to eliminate the need for businesses to spend months and vast sums of money establishing local entities.
While Remofirst primarily targets small and medium-sized businesses, it has also served larger clients such as Zocdoc, World Health Organization, and Mastercard. “We see SMBs as an underserved segment of the market,” says Serik.
With its new funding, Remofirst plans to expand its presence internationally, with a particular focus on the United Kingdom. This news comes on the heels of Deel’s recent acquisition of African-based payroll and HR software company PaySpace and its announcement of over $500 million in ARR. Meanwhile, UAE-based RemotePass has also recently secured $5.5 million in Series A funding led by Istanbul-based 212 VC.
