HRtech

Darwinbox Set to Raise $120-$150 Million in Funding Round Led by KKR and Partners Group

• ByStartupStory     |    February 27, 2025

Enterprise HR technology platform Darwinbox is reportedly in advanced talks to secure a funding round of $120-$150 million, led by global private equity firms KKR and Partners Group, according to sources cited by Mint.

The funding round, expected to be a mix of primary and secondary infusion, will likely value the company at approximately $950 million. This represents a slight dip from its 2022 valuation of $1 billion when it attained unicorn status after raising $72 million in a funding round led by TCV.

Sources indicate that KKR is investing around $50 million, while Partners Group will contribute $55 million. Additionally, early investors, including Peak XV, Lightspeed Ventures, StartupXseed, and Endiya Partners, are expected to partially or fully exit through the secondary round.

Founded in 2015 by Jayant Paleti, Rohit Chennamaneni, and Chaitanya Peddi, Darwinbox operates in the human resources (HR) technology sector, offering digital solutions for workforce management, including payroll, attendance tracking, and employee onboarding.

Despite the adjusted valuation, Darwinbox has experienced substantial growth. In the financial year 2023-24 (FY24), the SaaS platform reported a 58% year-on-year increase in total revenue, reaching INR 393 crore, fueled by overseas expansion and AI-powered product enhancements.

“We are a well-capitalized company with a strong balance sheet. The board has prioritised long-term growth investments, including AI and R&D,” co-founder Jayant Paleti told Moneycontrol. While the company currently operates at a net margin deficit, Paleti emphasised that this is a strategic decision to sustain future growth.

The HR tech space has witnessed heightened investor interest, with companies focusing on automation, AI-driven analytics, and cloud-based solutions to enhance workforce efficiency. As Darwinbox continues to scale, its upcoming funding round is expected to provide the necessary capital to accelerate its technological advancements and global reach.

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