Indian HR-tech Startup Darwinbox Raises $140 Million in Funding to Fuel International Expansion

Indian startup Darwinbox, which specializes in building a SaaS platform for hiring, onboarding, and employee administration, has secured a significant amount of money, totalling $140 million, as it sets its sights on expanding globally, particularly in the United States. This latest funding round is being co-led by KKR and Partners Group and involves a combination of primary and secondary share sales, with various undisclosed investors offloading portions of their stakes.

Darwinbox's existing investors include big names such as Microsoft, Salesforce, Sequoia, TCV, Peak XV (formerly Sequoia India), and Lightspeed. Although the company did not disclose its valuation following this round, co-founder Jayant Paleti confirmed that it represents an 'up-round.' The startup had previously raised around $270 million in total and was recently rumored to have a valuation of $950 million. This substantial injection of funds follows a previous funding round in 2022 that saw Darwinbox valued at over $1 billion. The company's primary competitors in the HR-tech arena, such as Rippling and Deel, are valued between $12 billion and $13 billion. 

Despite being smaller in size, Darwinbox is gaining attention due to its emergence as one of the leading home-grown enterprise startups in India and Southeast Asia. Moreover, its success in establishing a presence in the highly sought-after U.S. market and its focus on mid-market companies with over 3,000 employees are attracting significant interest. About 60% of its revenue now comes from outside of India, with the U.S. serving as the company's fastest-growing market. The startup's ambitious approach to HR, aiming to provide an all-in-one platform for various HR functions, has also garnered attention. 

Darwinbox's future plans involve further integrating AI into its platform to enhance its services, leveraging its position as a comprehensive HR system. Partners Group, one of the lead investors in this funding round, underscored Darwinbox's potential to disrupt the global HR-tech landscape and praised its ability to adapt its product for diverse markets.

Learn more about the funding here.