A naukri.com initiative
Hrexecutive
3w
8
How Rippling’s legal action against Deel may affect the HR tech market
- San Francisco-based HR tech unicorn Deel is facing allegations of corporate espionage, including stealing trade secrets and conspiring to violate the RICO Act.
- Deel is accused of cultivating a spy within competitor Rippling who obtained confidential business intelligence through suspicious searches.
- Both Deel and Rippling are key players in the HCM software market, experiencing rapid growth during the pandemic.
- Deel reached a $12 billion valuation in 2021 while Rippling achieved a $13.5 billion valuation by 2024.
- Rippling set up a 'honeypot' trap that exposed the suspected spy within Deel, leading to a dramatic confrontation.
- Deel denies any legal wrongdoing and plans to deliver counterclaims in response to the allegations.
- The legal battle between Rippling and Deel could have significant implications for the HR tech market.
- The lawsuit may impact regulators, government agencies, large clients, competitors, solution developers, and financial partners.
- The scandal could reshape the competitive landscape and lead to market redistribution among global HR platforms.
- Smaller and niche players might benefit from the situation by positioning themselves as lower-risk alternatives.
- There could also be possible acquisition scenarios, with Rippling potentially having leverage to acquire Deel through the lawsuit.
Read Full Article
Like
For uninterrupted reading, download the app