RemotePass, which helps firms onboard, handle, pay and retain distant staff, raises $5.5M

As distant work turns into more and more prevalent, organizations globally are adapting, particularly concerning onboarding procedures for brand spanking new staff and navigating cross-border cost complexities. This new age of labor has led to a surge in demand for startups that present human sources (HR), payroll and compliance instruments to assist companies rent remotely.

RemotePass, one such enterprise out of the UAE, has raised $5.5 million in Sequence A funding led by New York-based 212 VC. Different taking part traders embrace Endeavor Catalyst, Khwarizmi Ventures, Oraseya Capital, Flyer One Ventures, Entry Bridge Ventures, A15 and the Swiss Founders Fund. 

CEO Kamal Reggad and Karim Nadi based RemotePass in late 2020 to permit companies to onboard, handle and pay their expertise base in nations the place they lack native authorized presence. The platform, which serves a variety of shoppers, from startups to massive enterprises, together with Spotify and Logitech, facilitates hiring contractors and full-time staff in additional than 150 nations.

However RemotePass didn’t begin with this premise. A 12 months earlier than launch, it was SafarPass, providing a SaaS platform for streamlining enterprise journey and expense administration by means of a devoted app. The concept was to handle the prevalent disarray in company journey, which occurred to garner important curiosity till the onset of the worldwide pandemic.

In an interview with TechCrunch, Reggad revealed that as SafarPass encountered challenges, it turned more and more obvious that the pandemic would extend enterprise journey restoration. A shift out there meant a pivot turned inevitable. On the time, SafarPass, even earlier than the pandemic, operated as a remote-first crew comprising 18 staff throughout the UAE, Africa and Europe. As such, Reggad gained firsthand perception into the intricacies of managing a distant workforce and navigating related cost hurdles, thus laying the groundwork for RemotePass.

“We had to deal with payment issues at the end of each month. With contract work, one wasn’t so sure about the compliance overall. We knew that if we’re having this problem being a six-month-old company, our clients might, as well,” commented Reggad. “If you look at the Middle East, for instance, there are different countries with their currency, laws and complexities regarding financial services and benefits. And we decided to build something enabling these companies to onboard pay and manage these team members easily.”

Picture Credit: RemotePass

Seizing the chance supplied by the pandemic because the world started to embrace distant working at scale, RemotePass grew 35% month over month for its first two years, primarily pushed by shopper referrals. The CEO stated the platform, which offers customers a number of payout choices, grew 2x in income between 2022 and 2023. Buyer and income progress was buoyed by $5.4 million in enterprise capital RemotePass secured prior to now, cash it used to scale its platform to serve over 600 firms and eight,000 distant staff in rising markets. 

A number of firms are actively facilitating distant work and aiding staff in receiving funds from employers. Whereas trade giants like Deel (which immediately acquired Africa’s HR and payroll platform PaySpace) and Remote dominate a good portion of the market share, RemotePass says it distinguishes itself by leveraging its experience in rising markets, significantly within the Center East and Africa.

Reggad emphasizes RemotePass’s localized method through its tremendous app, whose options — resembling greenback debit playing cards that allow customers to carry funds in USD, mitigating dangers related to forex fluctuations and month-to-month medical insurance advantages that reach to dependents — are tailor-made to the distinctive wants of finish customers in these markets. The Dubai-based startup works with third-party suppliers for its insurance coverage product, and aside from an end-to-end contractor administration platform, it additionally offers companies with EoR providers and relocation assist. 

“When our clients hire, they care about the remote workers. This is why they like what we offer in terms of financial services and benefits and giving these flexibilities to the remote workers,” stated the chief government who labored within the U.S. as a programs engineer earlier than returning to Morocco in 2011 to start out Hmizate, a journey and purchasing e-commerce web site that ultimately acquired bought. “At the end of the day, everything reflects to retention. If a contractor or full-time employee is happy and they have this ecosystem of services, they are happier and get to stick around longer.”

RemotePass generates income by means of a subscription mannequin. The payment for partaking contractors is $40/month per energetic contractor. For firms hiring full-time staff, the subscription charges vary from $350 to $699/month per worker, relying on the nation and particular necessities for immigration and relocation providers. Whereas contractors and full-time staff at the moment want their employers on RemotePass, that won’t stay the case for too lengthy because the platform works towards creating entry for finish customers independently, resulting in a brand new income stream for the platform down the road.  

With this progress capital, RemotePass’ focus is twofold. First, it’s intensifying efforts to reinforce its product’s enterprise readiness. Second, it intends to onboard extra companies in Saudi Arabia, the place it’s seen essentially the most progress and double down with product localization. 

“Witnessing RemotePass’s remarkable product growth and stellar customer service since early 2023 solidified our belief in their visionary team & business model,” Ali Hikmet Karabey, managing director at 212 VC, stated in a press release. “Addressing today’s workforce challenges like talent mobility and remote work, RemotePass stands out as a key enabler. It connects companies seeking a broader talent pool with emerging market talents who previously lacked access to global financial solutions and processes. This disruption positions them as game-changers in the UAE & KSA, hubs poised for global dominance.”