HYDERABAD: HRTech Startup Darwinbox's Remarkable $140M Funding Achievement

In a significant boost to its growth trajectory, Darwinbox, a Hyderabad-based HRTech startup, has successfully raised $140 million. This funding round was co-led by the esteemed Partners Group and KKR, with Gravity Holdings also participating. The investment is a blend of primary and secondary funding, with the majority stemming from a secondary fundraise. This move allowed early investors to sell a portion of their stakes, as revealed by Darwinbox co-founder Rohit Chennamaneni to TOI. Although the exact split between primary and secondary funding remains undisclosed, the company's valuation has soared beyond $1 billion.

Strategic Growth and International Expansion

Established in 2015, Darwinbox is set to leverage this investment to enhance its technological prowess, particularly in AI-related developments, and to expedite its international expansion, especially targeting the US market. The inclusion of Partners Group and KKR into its cap-table is a testament to Darwinbox's robust growth momentum in recent years.

Global Footprint and Future Prospects

With a mobile-first, AI-enabled human capital management platform, Darwinbox serves over 1,000 enterprises worldwide. Its rapid international expansion within a decade into markets like Asia Pacific, the Middle East, the United Kingdom, and the United States, which it entered two years ago, is noteworthy. Chennamaneni highlighted a fivefold growth in revenue in international markets over the last two years, now accounting for over 60% of new revenue.

Leadership and Investor Confidence

Cyrus Driver, managing director of private equity at Partners Group, praised Darwinbox for its disruptive impact on legacy platforms, its investment in product innovation, generative AI, and global expansion. Similarly, Akshay Tanna, partner and head of India private equity at KKR, commended Darwinbox's rapid rise as a leading player in the HCM space, attributing its success to innovation and customer centricity. KKR looks forward to supporting Darwinbox's next growth phase, leveraging its global network and expertise to fuel the company's international ambitions.