Latest news with #AlexBouaziz
TechCrunch
19 hours ago
- Business
- TechCrunch
Rippling calls Deel ‘a criminal syndicate' and claims 4 other competitors were spied on, too
The fight between HR tech startups has heated up another notch this week as Rippling on Thursday filed an 84-page amended complaint in its lawsuit against Deel. The complaint accuses Deel of targeting, infiltrating, and compromising four other competitors, in addition to Rippling. The revised complaint doesn't name all of the four other alleged victims, except cryptocurrency-based tax and payroll compliance company, Toku. Toku is suing its competitor LiquiFilegal also alleging corporate espionage, and that Deel was involved. The complaint alleges that 'Victim-3 is a startup accelerator that previously partnered with Deel.' The complaint doesn't name, or even imply, who that is. (Y Combinator backed both Rippling and Deel but there's no indication this refers to the VC firm. YC has not yet responded to our request for comment.) The complaint also vaguely says that there are one or more additional victims who are 'one or more major competitors of Deel' in the employer of record market. A source familiar with the investigation believes that more witnesses will soon come forward at these other companies to offer details. (Deel did not immediately comment. We will update this story with its response once it does.) Rippling's amended suit also alleges that Deel's CEO Alex Bouaziz was the direct mastermind of it all, sharing screenshots of messages as its evidence. And, although this is a civil suit, Rippling is now implying that this could be a criminal matter. 'This case is about a criminal syndicate that operated from the shadows of a multibillion-dollar technology company – Deel,' the complaint reads. Rippling's amended lawsuit is now suing Deel under the federal RICO statute, as well as the Defend Trade Secrets Act, and California state law. The lawsuit directly names Alex Bouaziz, his father Philippe Bouaziz who is chairman and chief financial officer, and Deel's chief operating officer Daniel Westgarth. It's important to note that the lead attorney for Rippling is Alex Spiro of white-shoe law firm Quinn Emanuel. Spiro is a former prosecutor for the Manhattan District Attorney's Office. (He's well known in the legal world, and has his own Wikipedia page.) Using words like 'criminal syndicate' in a civil case would be a deliberate choice. According to the source familiar with the case, federal prosecutors are now actively looking into the allegations against Deel as well. An investigation, however, is not a conviction. But should charges be filed, Rippling is doing its best to set up Bouaziz himself as one of the people responsible. The complaint even goes so far as to repeatedly use the colorful language 'the Bouaziz Racketeering Enterprise.' Other than that, much of the amended complaint reiterates what Rippling has already alleged. To recap: a Rippling employee confessed to being a paid spy for Deel in an Irish Court, in an affidavit that reads like a Hollywood movie. The employee admitted in court to taking sales leads, product roadmaps, customer accounts, names of superstar employees, and whatever other information was asked for. The employee was caught in a Rippling-set honeypot, both he and Rippling say. Rippling is suing Deel, alleging misappropriation of trade secrets, tortious interference, unfair competition, and more, largely based on the spying allegations. Deel has counter-sued in a case that is less about denying Rippling's charges and making a bunch of its own claims about Rippling. For instance, earlier this week, Deel filed an amended lawsuit that claimed that Rippling was spying on Deel by having an employee 'impersonate' a customer to obtain non-public product information. Grab some fresh popcorn. This battle between arch rivals shows no sign of slowing.
Independent Singapore
2 days ago
- Business
- Independent Singapore
Deel reaches $1B revenue run rate in Q1 2025; Singapore revenue growth surges 75% YoY
Photo: Facebook/Deel SINGAPORE: Deel reached a $1 billion revenue run rate in the first quarter of 2025 (Q1 2025), just six years after it was founded, and has continued to grow in April and May. Notably, in Singapore alone, the payroll and HR company's revenue grew 75% year-on-year, according to the company's press release on Tuesday (June 3). From April 2024 to April 2025, Deel's revenue grew 75% YoY. Its HR and payroll products also surged to a 164% YoY growth. The company has been profitable since Q3 2023 and achieved double-digit earnings before interest, taxes, depreciation, and amortisation (EBITDA) margin growth in Q1 2025. Anish Acharya, General Partner at Andreessen Horowitz and Board Member at Deel, said, 'When I first met Deel, there were 10 people with a big idea, and now they're powering global teams at a massive scale.' Deel CEO and co-founder Alex Bouaziz said the milestone reflects the trust their customers have placed in the company. 'From day one, we believed the future of work demanded a new kind of infrastructure — one that was global, flexible, and obsessed with quality. We're proud of this milestone, but we're even more excited about what's next. Our work has only just begun,' he added. Mark Samlal, Deel's General Manager for Asia Pacific, added, 'Surpassing the $1 billion run rate is not just a global milestone for Deel, but a testament to the trust and momentum we're seeing across Asia-Pacific.' 'As businesses here [in Singapore] continue to expand internationally and embrace new ways of working, Deel remains committed to empowering them with the infrastructure and expertise needed to build truly global teams with confidence and speed.' Deel has a customer base of over 35,000 companies and 1.25 million workers across more than 150 countries. Its clients include major firms such as Klarna, BCG, and /TISG Read also: Telegram set to get US$300M and half of xAI revenue from Grok chatbot deal, 'pending formalities'
CNA
3 days ago
- Business
- CNA
Deel eyes more acquisitions after hitting $1 billion annual revenue run rate
Payroll startup Deel said on Tuesday it crossed $1 billion annual revenue run rate in the first quarter and has earmarked up to $500 million for acquisitions this year to bolster growth. Customers use Deel's global payroll platform to manage their international workforce. Deel, which acquired Safeguard Global's payroll division for an undisclosed amount in March, allocated an M&A budget of between $200 million and $500 million this year, CEO Alex Bouaziz told Reuters. The San Francisco, California-based company is still aiming for a 2026 U.S. initial public offering, but it depends on macroeconomic conditions. Deel said its revenue rose 75 per cent for the twelve months ended April 30. It reported earnings before interest, taxes, depreciation, and amortization margin of 16 per cent for the first quarter, ended March 31. Bouaziz said he does not know if the company will be able to keep growing at the same level, but "we are going to try our best." Founded in 2019, Deel provides services to help companies hire international employees and contractors while ensuring compliance with local labor laws. It also automates payroll processing for businesses operating across multiple countries. Deel — which has 6,500 employees and more than 35,000 customers including AI startup ElevenLabs, Nike, Klarna, and Shopify — competes with companies such as Rippling, Omnipresent and Automatic Data Processing. "We believe in the idea that typically, the service you get is tied to how much you are willing to pay ... Deel is a bit more premium than most companies," Bouaziz said. In March, rival Rippling filed a lawsuit against Deel alleging racketeering, misappropriation of trade secrets and unfair competition, among others. Deel filed its own lawsuit for defamation in April, saying Rippling has been running a multi-year smear campaign against it. The company also believes the allegations by Rippling are driven by the fact that "Deel is winning in the market."
Reuters
3 days ago
- Business
- Reuters
Deel eyes more acquisitions after hitting $1 billion annual revenue run rate
June 3 (Reuters) - Payroll startup Deel said on Tuesday it crossed $1 billion annual revenue run rate in the first quarter and has earmarked up to $500 million for acquisitions this year to bolster growth. Customers use Deel's global payroll platform to manage their international workforce. Deel, which acquired Safeguard Global's payroll division for an undisclosed amount in March, allocated an M&A budget of between $200 million and $500 million this year, CEO Alex Bouaziz told Reuters. The San Francisco, California-based company is still aiming for a 2026 U.S. initial public offering, but it depends on macroeconomic conditions. Deel said its revenue rose 75% for the twelve months ended April 30. It reported earnings before interest, taxes, depreciation, and amortization margin of 16% for the first quarter, ended March 31. Bouaziz said he does not know if the company will be able to keep growing at the same level, but "we are going to try our best." Founded in 2019, Deel provides services to help companies hire international employees and contractors while ensuring compliance with local labor laws. It also automates payroll processing for businesses operating across multiple countries. Deel — which has 6,500 employees and more than 35,000 customers including AI startup ElevenLabs, Nike (NKE.N), opens new tab, Klarna (KLAR.N), opens new tab, and Shopify ( opens new tab — competes with companies such as Rippling, Omnipresent and Automatic Data Processing (ADP.O), opens new tab. "We believe in the idea that typically, the service you get is tied to how much you are willing to pay ... Deel is a bit more premium than most companies," Bouaziz said. In March, rival Rippling filed a lawsuit against Deel alleging racketeering, misappropriation of trade secrets and unfair competition, among others. Deel filed its own lawsuit for defamation in April, saying Rippling has been running a multi-year smear campaign against it. The company also believes the allegations by Rippling are driven by the fact that "Deel is winning in the market."
New York Times
17-03-2025
- Business
- New York Times
Accusations of Corporate Espionage Shake a Software Rivalry
Spy accusations inflame an H.R. rivalry One of the most bitter rivalries in the world of H.R. service providers just took a turn that wouldn't be out of place in a spy thriller. Rippling on Monday sued Deel, accusing its competitor of hiring a mole in its Dublin office to comb through Rippling's trade secrets, a scheme that reached its rival's highest ranks, DealBook's Michael de la Merced reports. Rippling said it had uncovered the defector through a 'honeypot' trap — a Slack channel set up specifically for the ruse that was mentioned in a letter to top Deel executives. 'We're all for healthy competition, but we won't tolerate when a competitor breaks the law,' Vanessa Wu, Rippling's general counsel, said in a statement. A Deel spokeswoman declined to comment. The back story: Both companies have turned the seemingly humdrum business of human resources into multibillion-dollar operations. Rippling was most recently valued at $13.5 billion, according to the data provider Pitchbook, while Deel was valued at more than $12 billion. Aggressiveness also runs in their DNA, especially at Rippling, whose co-founder and C.E.O., Parker Conrad, is known for an especially hard-charging managerial style. The two have clashed repeatedly in recent years, with Conrad barring former Rippling employees who decamped to Deel from participating in secondary stock sales. A Rippling investor is also tied to a lawsuit in Florida accusing Deel of violating Russia sanctions. Rippling is now accusing Deel of perpetrating a 'brazen act of corporate theft.' In the lawsuit, Rippling said that the employee it had accused of being a plant — referred to in the complaint as D.S. — started searching for mentions of Deel in its Slack messaging system at an elevated rate starting in November. The goal, Rippling asserted, was to find information relating to sales leads involving Deel customers, pitch decks and more. Rippling said it began to suspect a mole when Deel tried to hire at least 17 members of its global payroll operations team via WhatsApp — which requires knowing those people's phone numbers — and when a reporter for The Information asked for comment about internal Slack messages relating to payments into Russia in violation of sanctions. A security review showed that D.S. had searched for those messages. Rippling said it had also discovered correspondence between D.S. and Alex Bouaziz, Deel's C.E.O. and co-founder. How Rippling said the scheme was uncovered: Earlier this month, Wu sent a letter to three people, including Philippe Bouaziz, Deel's chairman and C.F.O. (and father of Alex Bouaziz). The letter referenced a Slack channel that Wu implied had embarrassing information about Deel — but was really set up as part of the trap. Within hours, D.S. started searching the channel, the company asserts. Rippling said it obtained a court order last week forcing D.S. to turn over his phone. But when a court-appointed lawyer showed up at Rippling's Dublin office and demanded that the employee hand over the device, D.S. locked himself in a bathroom. He later fled the scene, it said. Rippling is playing hardball. Its lead lawyer on the lawsuit is Alex Spiro of Quinn Emanuel Urquhart & Sullivan, known for representing Elon Musk, Jay-Z and Mayor Eric Adams of New York City. 'This was not an isolated act of misconduct — it was a deliberate attack, perpetrated for over four months, designed to steal and weaponize critical competitive data,' the complaint reads. Stocks continue to wobble. The S&P 500 looks set to open lower on Monday with tariff jitters pushing the benchmark index into a four-week losing streak. Treasury Secretary Scott Bessent played down the market turmoil on NBC's 'Meet the Press' yon Sunday, saying the S&P 500's fall into correction territory last week was a 'healthy,' 'normal' occurrence. That said, the dollar is plummeting and investors are flocking to non-U.S. financial assets. And this just in: The O.E.C.D. sees 'trade restrictions' hitting global growth and leading to higher inflation. Another tech company looks set to test the I.P.O. market. Klarna filed late last week to go public, seeking to be valued at roughly $15 billion. That's still far below its 2021 valuation, at the height of the fintech boom. But a hot-performing I.P.O. — along with one by CoreWeave, an A.I. start-up — could help revive the moribund market for listings. Oracle reportedly ramps up talks with the White House on a TikTok deal. The software company has emerged as a front-runner to take over U.S. operations for the Chinese video app, with Vice President JD Vance and Mike Waltz, the national security adviser, playing a key advisory role in the talks, Politico reports. Still, Oracle faces significant obstacles, not least an April 5 deadline for TikTok to find a U.S. owner or be shut down. OpenAI and Elon Musk agree to a fast-track trial. What's emerged as the biggest feud in the tech industry — Musk suing to stop OpenAI's push to become a for-profit company — could go to trial in December. The presiding judge rejected Musk's demand for an injunction on OpenAI, but said a speedy trial was desirable, given 'the public interest at stake.' Still unresolved: Will the high-stakes dispute be heard by a jury? The week ahead It's an especially packed week, with central banks taking center stage. Here's what to watch: Monday: The release of February retail sales data will be in focus after some major retailers, including Dollar General, warned that consumers had begun to pull back on spending. Tuesday: Tech investors will be looking for a lift from Jensen Huang, the Nvidia C.E.O. He's set to deliver the keynote address at the chipmaker's marquee A.I. event. Wednesday: It's decision day. The Fed is expected to stand pat on interest rates, putting the spotlight on Jay Powell's news conference. Watch for what he says about the economy and inflation as trade-war jitters buffet global markets. Separately, the Bank of Japan is also likely to keep rates unchanged but signal that it's ready to raise them soon. Thursday: It's the Bank of England's turn; it too will probably keep its benchmark rate unchanged as President Trump's tariff uncertainty looms. Separately, Accenture, Nike, FedEx and the Olive Garden parent Darden Restaurants report quarterly results. Trump vs. Big Law For weeks, law firms across the country have wondered if they're going to be next on President Trump's list. He recently revoked security clearances for several top firms, limiting their ability to represent clients and undermining a basic premise of the legal system. Trump's latest attack took aim at Paul, Weiss, Rifkind, Wharton & Garrison, one of the most important firms, whose clients include investment giants like Apollo Global Management, tech leaders like Google and big names like the New England Patriots owner Robert Kraft. It raises key questions about how high-profile clients and white-shoe law firms are supposed to navigate the Trump era, DealBook's Lauren Hirsch reports. Do clients have any recourse? Many stay with a firm for decades, not only because of the trust built over time but also business arrangements are often complex and would be hard to unwind. Some clients might be Trump supporters. Could they step in and broker a deal? Will law firms band together? Representatives for Apollo, Kraft and Google did not respond to requests for comment on whether they planned to stay with Paul, Weiss. Catch up. In February, Trump issued an executive order that revoked the security clearance for the law firm Covington & Burling, which represented Jack Smith, the former special counsel who pursued two separate indictments of the president in 2023. And earlier this month, the president signed an executive order barring lawyers from Perkins Coie from entering federal buildings and stripping them of their security clearances. His order against Paul, Weiss was seen as retaliation against Mark Pomerantz, a former partner, who had tried to build a criminal case against Trump. (A Paul Weiss spokeswoman told The Times he left the firm in 2012.) Trump's attacks have been stifled for now. Perkins Coie sued Trump, and last week a federal judge temporarily barred his administration from carrying out punishments against the firm. Judge Beryl A. Howell of Federal District Court in Washington said the order sent 'little chills down my spine.' But his assault is already having a huge impact on business. Perkins Coie said in its suit against Trump that it had seen a 'significant' loss in revenue. Big firms are scrambling, DealBook hears. They're assessing their past work to see if they might be vulnerable to a Trump attack. Like many across corporate America, some have started to scrub any language about diversity, equity and inclusion on their websites to avoid attracting the spotlight. Firms fear speaking out. Some have debated whether they should express support for those in the cross hairs in a group statement, but worry that taking a public position would only draw Trump's anger and hurt their ability to represent clients. In a recent management meeting at a major corporate law firm, an argument broke out over whether to sign such a letter, one of its lawyers told DealBook. The partners ended the session without a resolution. 'Have some missteps been made? Yes, probably, because Kentucky bourbon has been included as if it were a trade threat.' — Prime Minister François Bayrou of France, arguing that the European Union's planned tariff on bourbon could backfire and hurt his country's cognac industry. The D.E.I. retreat, by the numbers Boardrooms appear to be fretting over the Trump administration's attacks on diversity, equity and inclusion efforts as the president directs agencies to investigate 'illegal D.E.I.' in the private sector. Companies found to be too woke might have trouble getting deals done. Executives are retreating from talking about it. The number of companies in the S&P 500 that used the language 'diversity, equity and inclusion' in their annual regulatory filings with the S.E.C. has fallen by nearly 60 percent from 2024, The Times's Emma Goldberg, Aaron Krolik and Lily Boyce report. After the killing of George Floyd killing sparked nationwide protests in 2020, the number of businesses using these terms spiked and started to drop just before Trump re-entered office. The real surprise: Despite the Oval Office backlash, 78 percent of those companies are still talking about their diversity-related initiatives. Deals Politics, policy and regulation Best of the rest
