In a major development for the HR tech sector, Darwinbox has successfully raised $140 million (approximately INR 1,218.1 crore) in an undisclosed funding round. The round was co-led by global investment firms Partners Group and KKR, with additional participation from growth equity firm Gravity Holdings. This funding follows reports earlier in the week that Darwinbox was in discussions to secure a significant investment.
The Hyderabad-based startup plans to channel the fresh capital into accelerating its international expansion and deepening its technology stack, particularly in artificial intelligence (AI) and automation. Darwinbox has seen impressive growth in recent years, particularly in international markets, with the company claiming a fivefold increase in revenue overseas over the past couple of years. Currently, business from international markets accounts for around 60% of its total revenue.
Jayant Paleti, co-founder of Darwinbox, commented on the achievement, stating, “By placing the employee experience front and center — and ensuring our platform is deeply configurable to diverse local needs — we have helped transform HR for enterprises globally. With top-tier investors backing us, we’re poised to amplify our global momentum and deliver innovative AI-powered solutions for thousands of enterprises worldwide.”
While the startup did not disclose the specific valuation for the recent funding round, reports from last week indicated that the valuation was expected to hover around $950 million. Darwinbox first entered the unicorn club in 2022 after raising $72 million in its Series D round, which valued the company at over $1 billion.
Founded in 2015 by Paleti, Chaitanya Peddi, and Rohit Chennamaneni, Darwinbox provides a comprehensive cloud-based HR technology platform. The platform offers solutions across recruitment, onboarding, payroll, travel, and people analytics, alongside supporting core HR functions like performance management and employee engagement. Its clientele includes major names such as Starbucks, Nivea, AXA, Cigna, and WeWork, among others.
For the fiscal year 2023-24, Darwinbox reported a remarkable 58% increase in total revenue, reaching INR 393 crore, largely due to its international expansion efforts. The company also reported a significant improvement in EBITDA margin, up by 17 percentage points.
KKR, which is also a major investor in several Indian startups, has been increasing its focus on India’s growing startup ecosystem. In addition to its investment in Darwinbox, KKR has recently backed cloud kitchen startup Rebel Foods and holds stakes in companies such as Lenskart, Livspace, and LEAP.
Partners Group, the other lead investor, has been active in backing growth-stage companies globally. With its investment in Darwinbox, Partners Group continues to expand its portfolio in the rapidly growing HR tech market, where the company is seen as a key disruptor to legacy platforms. The Swiss private equity firm has invested $2.5 billion through its growth equity strategy.
Cyrus Driver, Managing Director of Private Equity at Partners Group, emphasized the company’s disruptive potential, saying, “Darwinbox is investing heavily in product innovation, generative AI, and global expansion, and is well positioned to take market share.”
