Remofirst, a global HR technology platform, has announced securing $25 million in Series A funding. This round was led by Octopus Ventures, a prominent venture capital firm, with participation from existing investors. The startup offers an Employer of Record (EOR) solution, allowing companies to hire and manage employees and contractors internationally without establishing local entities in each country.
In the relative note, earlier last year we wrote an article on “what founders need to know before scaling a remote team“, which got a good number of reads. So you might want to read that as well. Moreover, last year Israeli startup founded by ex-Microsoft exec grabs $16M. The company offered one-stop management of remote employees.
Founded in 2021, the relatively new company has experienced significant growth, boasting thousands of clients including Zocdoc, World Health Organization, and Mastercard. The company attributes this success to the increasing demand for solutions that streamline remote workforce management. Nurasyl Serik, CEO and co-founder of Remofirst, highlights the company’s mission: “We’re on a mission to radically improve hiring of remote employees around the world, and enabling the ‘freedom to work’ anywhere.”
What will the funds be used for
The new funding will allow Remofirst to expand its product offerings, hire key personnel, and strengthen its presence in international markets. Octopus Ventures’ Nicholas Sando believes the startup’s approach is crucial: “As more companies move operations globally, this funding will help Remofirst significantly expand their presence in international markets…offering their remote hiring solution to address a huge market need.”
By simplifying the process and reducing costs, Remofirst aims to “democratise access to a global workforce,” as Fedoriv states. This empowers companies of all sizes to tap into a wider pool of talent regardless of location.
Cost-effective compliance for international hiring
Remofirst acts as an Employer of Record, assuming legal responsibility for payroll, taxes, and benefits for internationally hired employees and contractors. Their fees start at $199 per month for an employee, significantly lower than the traditional route of setting up local subsidiaries. This cost-effective solution eliminates the complexities and expenses associated with international human resources tasks.
Focus on transparency and compliance
Remofirst emphasises its commitment to compliance by partnering with local legal experts in every region they operate. This ensures adherence to all labour laws and regulations, mitigating risks associated with misclassification of employees.
“Our competitors also talk a good game about compliance and take shortcuts when setting up their local operations–while we ensure compliance because we partner with highly-experienced in-country legal experts,” said Volodymyr Fedoriv, COO and co-founder of Remofirst.
What we think of the startup
Remofirst’s funding and its focus on cost-effective, compliant solutions for global remote teams position it well to address the growing needs of businesses in today’s globalised work environment.
The startup’s funding and its focus on cost-effective, compliant solutions for global remote teams position it well to address the growing needs of businesses in today’s globalised work environment. One report reportedly suggested that 73% of businesses surveyed planned to increase their use of remote workers in 2023. This trend is expected to continue, so Remofirst’s success will likely depend on its ability to maintain its cost advantage, expand its global reach, and continually innovate its service offerings.
