06th March, 2025 Hyderabad: Darwinbox, a leading Software-as-a-Service (SaaS) unicorn specializing in human resource management solutions, has raised $140 million in a funding round led by global private equity giants Partners Group and KKR. The new capital infusion is expected to bolster the company’s technological advancements and accelerate its international expansion strategy.
The latest investment round, which primarily involved secondary transactions with a small primary component, also saw participation from Gravity Holdings. Some of Darwinbox’s early investors, who had initially backed the firm during its seed and Series A rounds, have partially exited through this deal while retaining significant equity in the company.
“This investment is a testament to Darwinbox’s strong fundamentals and the trust we have earned from our 1,000+ global customer base,” said Jayant Paleti, Co-founder of Darwinbox. “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.”
Chaitanya Peddi, another Co-founder of Darwinbox, emphasized that the valuation in this funding round was at a premium compared to previous rounds. “These are early investors who entered during the seed and Series A rounds. The key point is that all of them have only partially exited and still retain significant equity in the company,” he noted.
Strong Financial Performance and Expansion Plans
The Hyderabad-headquartered HR tech company has experienced impressive financial growth in the past fiscal year. Darwinbox’s revenue surged by 58% to ₹393 crore in FY24, up from ₹249.5 crore in FY23. The company attributes this significant growth to increased investments in research and development, a rising share of international revenue, and enhanced contributions from existing customers.
The company’s EBITDA margin also improved by 17% compared to the previous fiscal year, signaling greater operational efficiency and profitability. Darwinbox, which is sector-agnostic, derives nearly 50% of its revenue from key industries, including banking, financial services, and insurance (BFSI), manufacturing, industrial, IT, and consulting sectors.
Founded in 2015, Darwinbox provides cloud-based HR technology solutions that help organizations manage a wide range of HR functions, including hiring and onboarding, touchless attendance, and employee engagement. The Peak XV and Lightspeed-backed firm has rapidly grown its customer base to over 1,000 enterprises across various sectors in 130 countries.
The latest funding round is expected to further strengthen Darwinbox’s position in the HR technology space as it eyes new markets and deepens its technological capabilities. The company has been expanding aggressively in regions such as the Middle East, Southeast Asia, and North America over the past decade, and this fresh infusion of capital will support its continued international growth.
Investor Confidence and Market Potential
The HR technology sector has been witnessing rapid digital transformation, with enterprises increasingly adopting AI-powered HR solutions to streamline processes and enhance employee experience. The confidence shown by global investors like Partners Group and KKR highlights Darwinbox’s potential to emerge as a key player in the global HR tech landscape.
Darwinbox was last valued at $1 billion in 2022 following a $72 million funding round led by Netflix-backer TCV. With the latest investment, the company’s valuation is expected to increase further, reflecting strong investor confidence in its business model and growth trajectory.
As the demand for cloud-based HR management solutions continues to rise, Darwinbox is well-positioned to capitalize on this trend. The company’s focus on AI-driven HR innovations, along with its expanding international footprint, is expected to drive its next phase of growth.
Industry analysts believe that Darwinbox’s ability to tailor its platform to regional and industry-specific needs gives it a competitive edge over other global HR tech providers. The company’s success in penetrating diverse markets, coupled with its strong financial performance, makes it a promising contender in the highly competitive SaaS landscape.
Future Outlook
With a strong pipeline of enterprise clients, a growing international presence, and a commitment to innovation, Darwinbox is set to scale new heights in the HR tech industry. The company plans to leverage its latest funding to enhance its AI capabilities, expand its suite of offerings, and strengthen its market leadership in existing and new geographies.
As Darwinbox continues to evolve, its latest funding milestone underscores the increasing demand for next-generation HR solutions that can adapt to the changing dynamics of the global workforce. With the backing of prominent investors and a clear vision for the future, the company is well on its way to redefining the future of enterprise HR management on a global scale.
