It is not always that a company name can communicate so much with six letters. Apple, which has six letters didn’t suggest much when it began. Neither did Amazon mean much. But along comes a new entrant in the human capital management workspace, Remote. Launching in January 2019, the company could not have timed its entry better.
Now, having raised $196 million, including a recent $150 million Series B round, the company is positioned to take its almost perfectly timed brand to new places. The company is valued at over $1 billion and is in hot pursuit of the global human capital management space. We’ve covered Gusto since its launch in 2011.
It’s a very large market indeed. The two best-known public companies in the space, ADP and Paychex, have a combined market valuation of nearly $140 billion. We doubt Remote knew in advance that the pandemic was coming. But naming a human resources business “remote” was certainly prophetic. The shift to remote work that happened due to the pandemic helped Remote accelerate its customer base by 7 times and users by more than 10 times.
Getting High on its Own Supply
Interestingly, the company eats its own dog food. The company has 220 employees working in 45 countries. So we can only imagine the challenges of getting on an “all hands call.” In past times, hiring globally took lots of time and money with arcane processes and procedures for each country. Remote has set out to make global hiring easier and freer of friction points. Companies choosing to use the Remote platform can accomplish important global payroll, tax, benefits, legal, and compliance services.
Rippling is another U.S. and San Francisco-based company that offers HR solutions – e.g. payroll, benefits, devices, apps. etc. Rippling agreed to partner with Remote to leverage its skills and capabilities outside of the U.S.
Here’s what Parker Conrad, CEO of Rippling had to say.
“Through our partnership with Remote, Rippling’s clients can hire, onboard, and pay someone anywhere in the world. [And] all through one HR system, with one set of reports and analytics, and with one place to make employee changes, across the globe. We chose to partner with Remote because of their global infrastructure, in-house expertise managing entities all over the world, and their strategy to closely integrate their service with clients’ other business systems. Rippling + Remote will give HR leaders assurance that their global teams always meet local tax and labor laws, no matter where they work.”
Removing Global Barriers
Remote will expand its advisory services. We read “advisory” as meaning consulting services. The intent is to offer advice on global benefits, equity pay plans, visa, and immigration issues. Also on employee relocation and other interrelated issues when hiring from a global marketplace of individuals.
Job van der Voort, CEO of Remote said this. “Our goal is to remove the barriers to hiring internationally, empower our customers to scale and provide access to job opportunities all over the world. Our seasoned team has spent the past year expanding our global infrastructure to deliver elegant solutions to complex international legal challenges. And with this funding, we will be adding new products, services, and partnerships.”
They’re certainly in the right place and the right time with the right name. How fast can they capitalize on their name and aspiration, time will tell.