HR Tech Unicorn Plans to Strengthen AI-Powered Offerings and Expand Market Presence
March 5, 2025
Darwinbox, a leading HR technology provider, has successfully raised $140 million in a funding round co-led by Partners Group and KKR, marking one of the largest investments in the global HR SaaS (Software as a Service) sector. The funding round also saw participation from Gravity Holdings, underscoring strong investor confidence in Darwinbox’s AI-driven HR technology solutions and its rapid global expansion.
The Hyderabad-based human capital management (HCM) platform plans to deploy the new capital to enhance its artificial intelligence (AI)-powered offerings, accelerate international expansion, and fortify its market leadership across Asia-Pacific, the Middle East, the UK, and the United States.
Strengthening AI Capabilities and Global Reach
“With AI-driven innovations at the core of our platform, Darwinbox is transforming enterprise HR by placing employee experience at the forefront,” said Jayant Paleti, Co-founder of Darwinbox. “This investment fuels our global momentum and enables us to deliver next-generation HR technology solutions for enterprises worldwide.”
Founded in 2015 by Jayant Paleti, Rohit Chennamaneni, and Chaitanya Peddi, Darwinbox offers a cloud-based HR management system that integrates AI and automation to enhance talent management, workforce analytics, payroll processing, and employee engagement. The company has expanded aggressively over the past two years, particularly in North America, where it has gained significant traction among enterprise clients.
Darwinbox’s Growth Trajectory and Market Expansion
Since its unicorn milestone in 2022, when it secured a $72 million investment from TCV at a valuation exceeding $1 billion, Darwinbox has accelerated its international expansion strategy. In 2023, Microsoft made a strategic investment in the company, further solidifying its market credibility.
The company has expanded operations in key Southeast Asian markets, including Indonesia, Singapore, the Philippines, Malaysia, Vietnam, and Thailand. Additionally, it has made inroads into the Middle East, Saudi Arabia, the UAE, and the US, where demand for AI-powered HR solutions is surging.
Key business highlights:
- 3X revenue growth in the past two years.
- More than 900 enterprise clients and 3 million active users globally.
- FY24 revenue reached ₹392 crore, reflecting a 58% YoY growth.
- International revenue surged by 87%, contributing over 50% of new ARR (Annual Recurring Revenue).
KKR and Partners Group Double Down on Tech Investments
KKR’s investment in Darwinbox comes through its Asia Next Generation Technology strategy, which focuses on high-growth software, fintech, and consumer technology companies. The global investment firm has previously backed Lenskart, Rebel Foods, and Livspace, underscoring its confidence in scalable tech-driven businesses.
Partners Group, investing through its growth equity strategy, has an extensive track record in high-growth digital platforms, having previously funded companies such as Lumin Digital (a cloud-based banking provider) and Neara (an AI-driven infrastructure modeling platform).
Darwinbox’s existing investors include:
- Microsoft
- Salesforce Ventures
- Peak XV (formerly Sequoia India)
- Lightspeed Venture Partners
- Endiya Partners
- TCV
Avendus Capital acted as the financial advisor for this transaction.
Surging Investor Interest in AI-Powered SaaS Startups
Darwinbox’s funding round comes at a time when the SaaS ecosystem is witnessing renewed investor interest, particularly in AI-driven enterprise solutions. Companies that integrate machine learning, automation, and predictive analytics into their software solutions are attracting higher valuation multiples and larger investment rounds.
Other AI-powered SaaS startups, such as SuperOps, Whatfix, and Atomicwork, have successfully secured significant funding, signaling a broader shift in investor preference toward automation-first enterprise software.
According to industry data, SaaS startups raised approximately $445 million in the first two months of 2025, including several high-value acquisitions.
Top SaaS investors in 2025 include:
- Blume Ventures
- Peak XV (formerly Sequoia Capital India)
- Elevation Capital
- Accel India
- Neon Fund
- 3One4 Capital
- Together Fund
Future Outlook: Darwinbox’s Global Ambitions
With this fresh capital infusion, Darwinbox is well-positioned to:
- Expand AI-driven HR solutions for large enterprises.
- Strengthen cloud-based HR management capabilities.
- Scale operations in North America and Europe.
- Deepen integrations with global tech ecosystems, including Microsoft Azure and Salesforce Cloud.
As workforce automation, data-driven decision-making, and personalized HR analytics become increasingly critical for enterprises, Darwinbox’s AI-powered platform is poised to shape the future of human resource management globally.
With a robust product roadmap, strategic investor backing, and a strong growth trajectory, Darwinbox is set to redefine the HR technology space, solidifying its position as a market leader in next-gen enterprise HR solutions.
