There are Goliaths and Davids in the field of HR tech startups. The Goliaths are Deel and Rippling, who have each raised millions of dollars in venture capital. However, Remofirst—which recently received $25 million in Series A funding—is emerging as a very deserving David.
The HR tech startup Remofirst claims that it hires workers and contractors for its clients in over 180 countries without requiring such businesses to establish local branches. According to CEO and co-founder Nurasyl Serik, this can assist those businesses be more compliant while also saving them time and money.
Remofirst runs that company to hire employees on behalf of companies and manages “everything to do with hiring a person in a company” by acting as an employer of record, according to Serik. This include supplying work equipment, helping companies create competitive compensation plans, handling payroll, taxes, employment, and compliance, as well as providing health, dental, and vision insurance.
Remofirst, which did not disclose precise sales data, claims that since raising its $14.1 million seed round in September 2022, its annual recurring revenue (ARR) has increased 10 times.
Serik claims that this increase in revenue attracted three term sheets in four weeks, which helped the company land $25 million in Series A funding. The most recent round of funding was led by the European venture capital firm Octopus Ventures and included contributions from previous backers QED, Mouro Capital, and Counterpart Ventures.
The company stated that it was a “strong up round,” but it would not disclose the valuation.
Remofirst is unfazed despite having raised significantly less money than rivals Deel (which has raised more than $600 million and was last valued at $12 billion) and Rippling (which raised $500 million in 2023 alone). According to Serik, one of the ways Remofirst stands out from the competition is that it is far more affordable.
In its initial conversations with prospective clients, the business repeatedly heard that pricing was an obstacle and that there were “good solutions out there but they were cost prohibitive.”
Remofirst boasts that its prices, which begin at $199 for an employee and $25 for a contractor per month, are hundreds of dollars less than those of rivals Deel and Rippling.
For instance, according to Deel’s website, monthly rates for employees begin at $599, while those for contractors start at $49 per month.
Remofirst’s “secret sauce,” according to Serik, is precisely how it is able to charge less. He claimed, “How we do it differently is all on the back end.” “We also do away with the necessity of investing months and tens of thousands of dollars in local entity setup in order to hire foreign workers.” Additionally, Volodymyr Fedoriv, co-founder and COO of Remofirst, informed the sources that although most rivals choose to set up corporations themselves, Remofirst seeks to “ensure” compliance by cooperating with local legal “experts.”
Read More: https://thecioworld.com
