HR tech firm Darwinbox has secured a US$140 million investment to accelerate its global expansion, particularly in the US. The funding round was co-led by KKR and Partners Group to support the SaaS company’s bid to disrupt legacy HR systems.

Darwinbox offers an integrated human capital management platform, covering everything from talent acquisition and onboarding to payroll, leave management, and performance tracking.

With this latest capital injection, Darwinbox has now raised approximately $270 million since its inception.

While the company has not disclosed its updated valuation, co-founder Jayant Paleti confirmed it as an up-round, with local reports previously estimating it at $950 million.

This figure, however, places Darwinbox well below other HR tech giants Rippling and Deel, which command valuations between $12 billion and $13 billion.

Despite the disparity, Darwinbox is proving itself as a serious contender. It exemplifies the growing wave of enterprise SaaS companies emerging from India and Southeast Asia, a trend that an investor once dubbed the “SaaS-ification of Asia,” TechCrunch reported.

With deep pockets of funding pouring into the region and a vast market to serve, Darwinbox is positioning itself as a formidable global player.

Cracking the US market

One of Darwinbox’s most significant achievements is its successful expansion beyond India, with 60% of its revenue now generated internationally.

The US has become its fastest-growing market, prompting Paleti to relocate to Texas to capitalise on the opportunity.

The company currently serves over 1,000 enterprises, managing HR operations for more than 3 million employees. It primarily targets midmarket organisations with workforces exceeding 3,000 employees.

This ability to scale internationally while adapting to local markets has been a key differentiator in its growth story.

The company’s recent release of a multi-country payroll solution and generative AI-powered features reinforce its commitment to innovation. “We are the system of record for HR,” Paleti said.

The co-founder, however, acknowledged the challenges of breaking into a market dominated by legacy systems.

“When we started in 2015, it almost felt overwhelming. Here we were, a small band of three people in a corner of Asia, and we wanted to build this global company that will take on these legacy players,” he said.

“This investment is a testament to Darwinbox’s strong fundamentals and the trust we have earned from our 1,000+ global customer base.

“By placing the employee experience front and centre – and ensuring our platform is deeply configurable to diverse local needs – we have helped transform HR for enterprises globally. With top-tier investors backing us, we’re poised to amplify our global momentum and deliver innovative AI‐powered solutions for thousands of enterprises worldwide.”

Challenging legacy HR tech companies

The fresh capital also cements Darwinbox’s reputation as an industry leader. In 2024, it was recognised as a Challenger in the Gartner Magic Quadrant for Cloud HCM Suites, making it the youngest and only Asian company to earn this recognition.

With its international presence expanding, Darwinbox is investing in AI to power its next-generation HR solutions. The company’s approach aims to streamline HR processes, enhance decision-making, and improve employee experiences.

Darwinbox’s growing client base includes global brands such as Starbucks, Nivea, AXA, Cigna, and WeWork.