Darwinbox Seeks Fresh Funding Of Up To $150 Mn: Report

Darwinbox Bags $140 Mn To Boost Tech Stack, Overseas Expansion

SUMMARY

The funding round which will be a mix of primary and secondary infusion, is expected to value the company at around $950 Mn

Darwinbox claimed to have reported 58% growth in its total revenue to INR 393 Cr during the financial year 2023-24 (FY24), driven by overseas expansion as well as research and development investments

Founded in 2015, the company counts TCV, Microsoft, Salesforce Ventures, Peak XV, Lightspeed and Endiya Partners among its investors

HR tech platform DarwinBox is reportedly in talks to raise $120-150 Mn (around INR 1,045 Cr) in a fresh funding round to be led by global private equity firms KKR and Partners Group.

As per a Mint report, the round, which will be a mix of primary and secondary infusion, is expected to value the company at around $950 Mn.

“While KKR is pumping in $50 Mn into the company, Partners Group will pool in $55 Mn,” the report added, citing sources close to the matter.

Darwinbox claimed to have reported 58% growth in its total revenue to INR 393 Cr during the financial year 2023-24 (FY24), driven by overseas expansion as well as research and development investments.

Founded in 2015, the company counts TCV, Microsoft, Salesforce Ventures, Peak XV, Lightspeed and Endiya Partners among its investors.

Darwinbox joined the unicorn club in 2022 after raising $72 Mn in a funding round led by Technology Crossover Ventures. The company operates in India, Southeast Asia (Philippines, Singapore, Indonesia, Malaysia), Middle East (Saudi Arabia), US, UK, and Canada.

The Hyderabad-based startup has seen its international revenue growing by 87% in FY24, a 5X jump over the last two years. Southeast Asia emerged as the second-largest market for Darwinbox after India, followed by the Middle East.

In September last year, it unveiled a payroll platform with RIVeR (review, initiate, verify & e-approve, release & report) framework to facilitate 100% digital payroll processing.

The development comes at a time when HR tech platforms are gaining traction from investors, especially post pandemic, to manage workforce online. Coinciding with that, India is also witnessing an increase in startups offering solutions related to employee engagement.

Besides Darwinbox, HR tech startups like Keka, Nakuri, GetWork among others are providing technology-led solutions for employee management.

AI-driven recruitment, HR automation, upskilling and reskilling initiatives, task and performance management are some tech solutions addressed by the HR tech startups.