RemotePass, which helps companies onboard, manage, pay, and retain remote workers, raises $5.5M

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As remote work becomes increasingly prevalent, organizations globally are adapting, particularly with regard to onboarding processes for new employees and dealing with cross-border payment complexities. This new era of work has increased the demand for startups that provide human resources (HR), payroll, and compliance tools to help businesses handle remote hiring.

RemotePass, a UAE-based business, has raised $5.5 million in Series A funding led by New York-based 212 VC. Other participating investors include Endeavor Catalyst, Khwarizmi Ventures, Orasia Capital, Flyer One Ventures, Access Bridge Ventures, A15 and Swiss Founders Fund.

CEOs Kamal Regad and Karim Nadi founded RemotePass in late 2020 to allow businesses to onboard, manage, and pay their talent base in countries where they lack a local legal presence. The platform, which serves a range of customers from startups to large enterprises including Spotify and Logitech, facilitates the hiring of contractors and full-time employees in more than 150 countries.

But RemotePass did not start from this premise. A year before its launch, it was SafarPass, which offered a SaaS platform to streamline business travel and expense management through a dedicated app. the idea was To address the disruption in corporate travel, which generated significant interest until the onset of the global pandemic.

In an interview with TechCrunch, Regad revealed that as TravelPass faced challenges, it became increasingly clear that the pandemic would prolong the recovery of business travel. Changes in the market meant that a pivot became inevitable. At the time, Safarpass, even before the pandemic, operated as a remote-first team consisting of 18 employees across the UAE, Africa and Europe. Thus, Regd gained first-hand knowledge of the complexities of managing a remote workforce and overcoming the associated payment barriers, thus laying the groundwork for RemotePass.

“We had to deal with payment issues at the end of every month. With contract work, no one was so sure about compliance overall. We knew that if we were having this problem as a six-month-old company, our customers might too,” commented Regd. For example, if you look at the Middle East, there are different countries that have complexities regarding currency, laws, and financial services and benefits. And we decided to create something that would allow these companies to easily pay and manage these team members.”

Image Credit: remotepass

Taking advantage of the opportunity provided by the pandemic as the world began to adopt remote work on a large scale, RemotePass grew 35% month over month for its first two years, driven primarily by client referrals . The CEO said the platform, which offers multiple payment options to users, is set to grow revenue by 2x between 2022 and 2023. Customer and revenue growth so far was boosted by the $5.4 million in venture capital RemotePass secured, money it used to scale its platform to serve more than 600 customers. Companies in emerging markets and 8,000 remote workers.

Many companies are actively facilitating remote work and helping employees receive payments from employers. While industry giants like Deal (which today acquired Africa-based HR and payroll platform Payspace) and Remote dominate a significant portion of the market share, Remotepass says it is looking to expand its reach in emerging markets, particularly the Middle East and Africa. Differentiates yourself by leveraging your expertise.,

Regd emphasizes the localized approach of RemotePass through its Super App, whose features – such as dollar debit cards that enable users to hold funds in USD, minimize the risks associated with currency fluctuations and allow dependents Monthly health insurance benefits – tailored to the unique needs of end users in these markets. The Dubai-based startup works with third-party providers for its insurance product, and in addition to an end-to-end contractor management platform, it also provides EOR services and relocation assistance to businesses.

“When our clients hire, they care about remote workers. That's why they like what we offer in terms of financial services and benefits and the flexibility it gives remote workers,” said the chief executive, who worked in the US before returning to Morocco in 2011. Worked as a systems engineer and started a journey Hamizet. and a shopping e-commerce site that was eventually sold. “At the end of the day, everything reflects retention. If a contractor or full-time employee is happy and they have this ecosystem of services, they're happier and may stay longer.

RemotePass generates revenue through a subscription model. The fee for hiring contractors is $40/month per active contractor. For companies hiring full-time employees, membership rates range from $350 to $699/month per employee, depending on the country and specific requirements for immigration and relocation services. While contractors and full-time employees currently require their employers to be on RemotePass, this situation may not last much longer as the platform independently works towards opening up access for end users, creating a new need for the platform. Revenue stream is created.

With this growth capital, RemotePass' focus is twofold. First, it is stepping up efforts to increase the enterprise readiness of its product. Second, it intends to add more businesses to Saudi Arabia, where it has seen the most growth and has doubled down on product localisation.

“Watching RemotePass’ remarkable product development and excellent customer service since the beginning of 2023 strengthens our confidence in their visionary team and business model,” Ali Hikmet Karabay, managing director of 212VC, said in a statement. “Addressing today’s workforce challenges such as talent mobility and remote work, RemotePass stands as a key enabler. It connects companies looking for a broader talent pool with emerging market talent who previously did not have access to global financial solutions and processes. This disruption positions them as game-changers in the UAE and KSA, poised for global dominance.