HRtech Unicorn Darwinbox Bags $5 Mn Funding From SBI

HRtech Unicorn Darwinbox Bags $5 Mn Funding From State Bank of India

SUMMARY

DarwinBox has secured $5 Mn in an extended Series D funding round from State Bank of India (SBI)

In a special resolution, Darwinbox allotted 14,523 Series D3 CCPS at an issuance price of INR 28,105 apiece to raise $5 Mn from SBI

The development comes almost a month after Inc42 reported the HRtech startup secured about $4 Mn from tech behemoth Microsoft Corporation

HRtech unicorn Darwinbox has reportedly secured $5 Mn in an extended Series D funding round from State Bank of India (SBI).

Darwinbox will use the fresh funds for marketing, capital expenditure and other business operations. Including the current fundraising, the startup has raised a total of $115 Mn to date.

In a special resolution, Darwinbox allotted 14,523 Series D3 compulsory convertible preference shares (CCPS) at an issuance price of INR 28,105 apiece to raise INR 40.82 Cr ($5 Mn) from SBI.

The development comes almost a month after Inc42 reported Darwinbox secured about $4 Mn from tech behemoth Microsoft Corporation.

Set up in 2015 by Chaitanya Peddi, Jayant Paleti and Rohit Chennamaneni, Darwinbox is a cloud-based HRtech startup that offers HR solutions including recruitment, onboarding, core transactions, payroll, travel and people analytics, among others to organisations across India, SEA, and MENA region.

The HRtech startup entered the coveted unicorn club in January 2022 after securing $72 Mn from Technology Crossover Ventures, Salesforce Ventures, Sequoia India, Lightspeed India, Endiya Partners, 3one4Capital, JGDEV and SCB 10X.

Earlier, the startup shared plans of hiring about 2500 employees globally and also was aiming to list for bourses in the coming three years. It further aims to become profitable in India this year (2023) while targets to achieve profitability in Southeast Asia and Middle East by 2024.

The startup also informed that it would be foraying in New Zealand, Japan, the US and Australia over the next three years.

In the HRtech segment, it competes with the likes of Workday, SAP SuccessFactors, and Oracle Fusion, among others.

As per the Fortune Business Insights report, the global HRtech sector was pegged at $22.89 Bn in 2020 and will breach the $35.68 Bn mark in 2028, expanding at a CAGR of 5.8% during the forecasted period.

Of this, India accounted for $3.6 Bn of the global HRtech market in 2021.

The development was first reported by Entrackr.