Global private equity firm KKR and Partners Group are about to lead $120 million in funding at HR-Tech service provider Darwinbox as three aware of the development as private equity firms continue to look for closer mature technology startups Profitability.
The deal could be priced at about $950 million at about $950 million, the people said on anonymity, which would be a mix of major and middle school fundraising.
The first person quoted above said: “Although KKR makes $50 million in the company, Partners Group will collect it for $55 million.”
Early investor peak XV, Lightspeed Ventures, Startupxseed and Endiya Partners may exit investment in part or all in the second round. Mint is the first to report investors’ intentions to sell in July 2024.
In 2022, a $72 million Series D financing led by Technology Crossover Venture Capital (TCV) brought Darwin Cartridge to a coveted unicorn company worth more than $1 billion. In January 2023, it raised undisclosed quantities from Microsoft and the National Bank of India as part of an extended series of rounds with the same valuation.
Read also | Early investors in Darwinbox want to exit at 10-15% discount amid SaaS slowdown
The company regards the latest funds as a capitalized statement adjustment ahead of the planned initial public offering (IPO) later this year. The company has not yet chosen a banker and started the formal process. Avendus Capital is helping the company raise funds.
Emailed queries to KKR, Partner Group, Endiya Partners, Lightspeed Ventures and Avendus Capital without any response. A Darwinbox spokesperson also did not respond to questions.
Founded in 2015 by Jayant Paleti, Rohit Chennamaneni and Chaitanya Peddi, Darwinbox helps companies meet their HR needs in a variety of functions such as recruitment, onboarding, decline, attendance, salary, salary and person analysis. According to the company’s official website, some of its customers include Bigbasket, Pinelabs, IIFL Finance, Makemytrip and Unacademy.
Darwin Box revenue increased by 58% as overseas market leadership ₹According to media reports, the fiscal year ended March 31, 2024 was 3.92 million. The second person mentioned above said the company is likely to make a profit at the end of the fiscal year.
Human Resources Technology Market
Darwinbox competes with other HR management software providers, including Workforce.com, which is indeed Qualtrics, Bamboohr, SAP SuccessFactors, Workday, Peoplestrong, UKG Pro, Dayforce, ADP Workforce, ADP Workforce and Oracle Fusion Cloud Cloud HCM, among others, as well as with Gartner Tone the report together.
According to a report by consulting and research firm IMARC Group, the Indian human resources (HR) technology market hits US$1.13 billion in 2024. It expects the market to reach $2.4 billion by 2033, with an annual growth rate of 8.7%.
Read also | Will Tech HRS hit the restart button?
Globally, HR-Tech startups are growing steadily. Rippling recently said it is valued at over $13.5 billion after a new $200 million funding round led by Coatue.
Meanwhile, investors such as KKR and Partners Group have entered the Indian market in the past 12 months. Although KKR has invested in HCG Global, Healthium, Leap and Infinx, Partners Group has been focusing on harvesting investments and has withdrawn large checks from its portion of the IPO of Vishal Mega Mart. PE investors are likely to expand their risk of entering the Indian market through small digital transactions.
