Deel, a payroll and compliance platform that facilitates international employment, acquired Capbase, a fintech startup offering an all-in-one platform for managing securities transactions of startups, for an undisclosed amount in a cash and stock deal. As per the agreement, all of Capbase’s 20 employees are expected to join Deel.

Through this acquisition, Deel expects to expand its services to the equity management and issuance business globally by leveraging Capbase’s expertise in compliance and technology. 

Capbase provides assistance for startups to incorporate in the US and updates a startup’s cap table in real time based on the new issuances, contracts, and fundraises it performs. The platform then uses this data to create API integrations that are used to assist in setting up bank accounts, payroll, and business insurance. The platform was in private beta until April 2021, and its customer base reportedly grew “from 10 to more than 500 in less than 18 months.” To date Capbase has raised a total of ~USD 6 million in venture funding.

Analyst QuickTake: Deel, which was formed to allow businesses to hire employees and contractors internationally, developed its model with time by adding new features through multiple acquisitions, including Zeitgold and Paygroup to boost payroll offering, Roots to improve remote work, and Legalpad to incorporate legal services to Deel’s capabilities. This acquisition can be considered the latest of Deel’s efforts to give a global reach to its continuously evolving business model.