India-based HR tech platform Darwinbox has raised $140 million in a round co-led by global investment firms Partners Group and KKR, to scale its presence in international markets, which now account for the majority of its revenue.
The funding round was also participated in by Gravity Holdings.
Founded in 2015, Darwinbox claims to be servicing 1,000 enterprises around the world, including Starbucks, Nivea, AXA, Cigna, WeWork, Crisil (an S&P company), and T-Systems. It has a presence in regions including Asia Pacific, the Middle East, the United Kingdom, and the US, with over 60% of new revenue coming from international markets.
The startup, which is backed by Microsoft, caters to a firm’s HR needs across the employee life cycle including recruitment, onboarding, leaves, payroll, travel and expenses, employee engagement, performance management, and others.
“Darwinbox operates in the rapidly growing HR tech market, which we have been tracking through our thematic research. The company is acting as a key disruptor to legacy platforms in this space, investing heavily in product innovation, generative AI, and global expansion, and is well positioned to take market share.” Cyrus Driver, Managing Director, Private Equity, Partners Group, said.
In 2022, Darwinbox raised $79.5 million in a Series D round led by Technology Crossover Ventures (TCV) at a valuation of over $1 billion, show Tracxn data. The round was also joined by existing investors Salesforce Ventures, Sequoia Capital India (now Peak XV), Lightspeed India, and others.
According to media reports, Darwinbox is currently valued at about $945 million.
For KKR, Darwinbox joins a list of its growing investments in Asia, including Rebel Foods, an internet restaurant company in India; Lenskart, an omni-channel eyewear retailer; Livspace, an omni-channel home interior and renovation platform; KiotViet, a SaaS platform for SMBs in Vietnam; and Privy, a digital trust provider in Indonesia.
Most recently, KKR acquired a 54% stake in India-listed HealthCare Global Enterprises (HCG) for $400 million, highlighting its growing focus on the South Asian country.
Swiss PE player Partners Group has also been investing in India for more than a decade and, according to media reports, its India portfolio has quadrupled to more than $8 billion since it began investing in the market. Some of its India bets include retail chain Vishal Mega Mart and Aavas Financiers.
Darwinbox joins a growing list of mega deals—transactions worth at least $100 million—that have taken place this year.
Leading the table in January was Kedaara Capital’s $350 million investment in Indore-based Impetus Technologies. Another major deal was healthcare AI firm Innovaccer’s $275 million Series F round. Other notable transactions include Infra.Market’s $121 million fundraise and Aragen’s $100 million investment in contract research, development, and manufacturing.
Avendus Capital acted as the financial advisor and investment banker on Darwinbox’s fundraise.
