With the growing trend of remote work, companies worldwide are changing their strategies, particularly in their onboarding processes and dealing with cross-border payment complexities. This shift in work practices has boosted the demand for startups offering human resource (HR), payroll, and compliance tools, helping firms hire remotely. RemotePass, a UAE-based startup, has recently raised $5.5 million in a Series A funding round led by Istanbul’s 212 VC.
Other investors included Endeavor Catalyst, Khwarizmi Ventures, Oraseya Capital, Flyer One Ventures, Access Bridge Ventures, A15, and the Swiss Founders Fund.
Founded in late 2020 by CEO Kamal Reggad and Karim Nadi, RemotePass assists businesses in onboarding, managing, and paying their talent base in countries where they do not have a legal presence. The platform caters to a broad client base, from emerging startups to big enterprises such as Spotify and Logitech, allowing the hiring of full-time employees and contractors in over 150 countries.
However, before becoming RemotePass, it was known as SafarPass, a SaaS platform for simplifying business travel and expense management via a dedicated application. The platform aimed to sort out corporate travel chaos and had much interest until the COVID-19 pandemic took hold.
In a TechCrunch interview, Reggad explained that challenges faced by SafarPass during the pandemic made it evident that it would take a long time for business travel to rebound. Consequently, the shift in the market necessitated a pivot. Before the pandemic, SafarPass operated with a remote-first team of 18 employees based in the UAE, Africa, and Europe. Drawing from this experience, Reggad understood the nuances of managing a remote workforce and coping with related payment issues, hence establishing the foundation for RemotePass.
Reggad explained their decision stating, “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 realized that if we’re facing this problem as a six-month-old company, our clients might, as well.” He further noted that in places like the Middle East, where each country has its currency, rules, and financial services complexities, a platform like RemotePass that allows easy onboarding, payment, and management of team members became necessary.
RemotePass, capitalizing on the global transition to remote work during the pandemic, achieved a month-over-month growth rate of 35% in its first two years, primarily due to client referrals. The platform, which offers users various payout options, saw its revenue double from 2022 to 2023. This growth, along with the $5.4 million in venture capital secured by RemotePass, enabled the platform to cater to over 600 companies and 8,000 remote workers in emerging markets.
Considering the substantial market share occupied by Deel and Remote, RemotePass stands out by focusing on emerging markets, particularly in the Middle East and Africa. CEO Reggad emphasizes RemotePass’s localized approach through its super app. The features of the app are tailor-made to the exclusive needs of users in these markets, ranging from USD debit cards that safeguard against currency fluctuations to monthly health insurance benefits for dependents.
In terms of revenue, RemotePass functions on a subscription model. The fee for utilizing contractors is $40/month per active contractor. For companies recruiting full-time employees, subscription rates range from $350 to $699/month.
Going forward, backed by the raised capital, RemotePass aims to strengthen its product for enterprise readiness and onboard more businesses in Saudi Arabia, its primary growth area. Eventually, the platform plans to allow contractors and full-time employees to use RemotePass independently, thereby generating a new revenue stream.
Ali Hikmet Karabey, managing director at 212 VC, commended RemotePass’s impressive product growth and excellent customer service. He noted that RemotePass, through its innovative disruption, addresses current workforce challenges, widening global financial solutions, and processes accessibility for emerging market talents. Karabey praised RemotePass’s potential to be a game-changer, particularly in the UA and KSA, emerging hubs for global dominance.
