Payoneer Acquires Skuad for $61 Million in Cash

New York-based fintech Payoneer has acquired Skuad, a Singapore-based global HR and payroll startup, for $61 million in cash, as exclusively reported to TechCrunch. The deal includes potential additional payments of up to $10 million based on Skuad’s performance over the next 18 months. Payoneer has also committed to granting $10 million in restricted stock units, contingent on the continued employment of key personnel, bringing the total potential acquisition value to approximately $81 million.

Founded in 2019 by Sundeep Sahi, Skuad aims to simplify international hiring for small-to-medium-sized employers in over 160 countries. The startup addresses challenges such as regulatory variations, international payrolls, and remote onboarding. Before its acquisition, Skuad raised around $19 million in venture funding from investors like Beenext, Anthemis, NMVM, Argor Capital, and several angel investors.

Payoneer, a provider of cross-border payment services to about 2 million businesses in over 190 countries and territories, aligns with Skuad’s focus on SMBs operating internationally, particularly in emerging markets. While larger payroll management startups like Deel and Rippling target larger companies and enterprises, both Payoneer and Skuad cater to the needs of SMBs.

John Caplan, CEO of Payoneer, noted that Skuad operates a “high growth recurring revenue model.” He also announced that Payoneer achieved record revenue of $240 million in the second quarter, up 16% year-over-year. Skuad’s approximately 200 employees will join Payoneer’s workforce, which already numbers over 2,150 employees.

Caplan highlighted that one of Payoneer’s significant opportunities is capturing a share of the $6 trillion B2B market, as SMBs worldwide are increasingly exporting goods and services across borders. He emphasized the growing demand for scalable solutions for remote work and international payroll management in a post-pandemic world.

The acquisition is part of Payoneer’s broader strategy to expand its services and capture more of the global SMB market. This move follows Payoneer’s recent acquisitions, including AI data startup Spott and a payments company licensed to operate in China.