Darwinbox to strengthen its R&D play with infusion of $140 million

HR tech platform Darwinbox has raised $140 million in a funding round that brings global private equity giants Partners Group and KKR onto its cap table. Partners Group, one of the largest firms in the global private markets industry (acting on behalf of its clients), and funds managed by KKR, a leading global investment firm, will co-lead this investment with additional participation from Gravity Holdings.

Speaking to Business Today, Chaitanya Peddi, Co-founder of Darwinbox says that the investment is largely secondary, with early-stage investors partially liquidating their stakes while retaining meaningful equity in the company.

The fresh capital injection will be used to bolster Darwinbox’s research and development (R&D) efforts and accelerate its global expansion, according to Peddi.

“We have always been a product and R&D-first company. Our success against legacy HR tech players has been driven by product merit, and we want to maintain that edge,” he added.

Founded in 2015 in Hyderabad, Darwinbox is one of the leading HR tech firms which caters globally to 1,000 enterprises. In around a decade, Darwinbox has expanded internationally across multiple markets, including Asia Pacific, the Middle East, the United Kingdom, and the United States. Since its entry into North America two years ago, the company has seen significant traction and is doubling down on its regional presence.

“By placing the employee experience front and center — 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,” Jayant Paleti, Co-founder of Darwinbox said in a statement.

Despite its growing global footprint, India remains Darwinbox’s largest market. However, by the end of the year, the company expects revenue contributions from India and the rest of the world to be on par.

While profitability remains a long-term goal, the company is currently prioritising growth. “We are seeing rapid expansion in Southeast Asia and the US, and while we aim to grow efficiently, profitability timelines are difficult to predict,” Peddi noted.

Darwinbox is doubling down on artificial intelligence (AI) as part of its innovation strategy. The company recently launched an AI-powered product suite spanning multiple HR functions and is actively developing AI-driven agents to assist HR professionals in talent acquisition, digital transformation, and other areas.

Additionally, Darwinbox has significantly expanded its payroll offerings. Having initially provided payroll services only in India, the company has now built a global payroll platform and rolled out services in nine countries, including the GCC region, the Philippines, Indonesia, and Thailand, with plans to extend to the US.

An initial public offering (IPO) remains a long-term milestone for Darwinbox, though there are no immediate plans to go public. The company’s near-term focus is on achieving $100 million in annual recurring revenue (ARR) this year, a milestone that few Indian SaaS firms have crossed, particularly with a strong India-market presence.

Positioning itself against global HR tech giants such as SAP, Oracle, and Workday, Darwinbox aims to consolidate its position as a leading end-to-end HR platform.