Global private equity firms KKR and Partners Group are reportedly close to finalizing a $120-150 million funding round for HR-tech provider Darwinbox, which is expected to value the company at approximately $950 million. This funding round will involve both primary and secondary investments, with KKR contributing $50 million and Partners Group investing $55 million. Early investors, including Peak XV, Lightspeed Ventures, StartupXseed, and Endiya Partners, are anticipated to partially or fully exit their investments during this secondary round.
In July 2024, it was first reported that these investors intended to sell their stakes. Darwinbox, which achieved unicorn status in 2022 following a $72 million Series D funding round led by Technology Crossover Ventures, raised an undisclosed amount from Microsoft and the State Bank of India in January 2023 as part of an extended Series D round at the same valuation.
The upcoming funding is viewed as a strategic move to realign the company’s capitalization table ahead of its planned initial public offering (IPO) later this year. The company has yet to select bankers or initiate a formal IPO process, with Avendus Capital assisting in the fundraising efforts.
Founded in 2015 by Jayant Paleti, Rohit Chennamaneni, and Chaitanya Peddi, Darwinbox provides comprehensive human resource solutions, including recruitment, onboarding, leave management, attendance tracking, payroll, and people analytics. Its client roster features notable companies such as BigBasket, PineLabs, IIFL Finance, Makemytrip, and Unacademy. With a significant portion of its business coming from international markets, Darwinbox reported a 58% revenue increase, reaching ₹392 crore for the financial year ending March 31, 2024. The company is projected to achieve profitability by the end of the current financial year.
In the competitive HR-tech landscape, Darwinbox faces rivals such as Workforce.com, Indeed, Qualtrics, BambooHR, SAP SuccessFactors, and Workday.