Software Unicorn Darwinbox wins KKR, Partners Group funding

Darwinbox raised $140 million in a round led by KKR & Co. and Partners Group AG as it deepens its US presence and gears up for a stock-market debut.

The company, which counts Starbucks Corp. and Adidas AG among customers for its people management tools, will keep its valuation at more than $1 billion with the new funding, co-founder Jayant Paleti said in an interview. The round will consist of primary and secondary shares, he said, declining to elaborate on the split.

The Microsoft Corp.-backed firm has more than 1,000 staff in locations including India and Southeast Asia and aims for an initial public offering in about two to three years when conditions suit, Paleti said. Darwinbox joins a growing pool of young tech firms in Asia striving for a public listing as IPO markets in the US and India heat up.

Darwinbox expects to reach $100 million in annual recurring revenue this year, banking on 50% to 60% annual growth in sales as it expands across geographies including the US, Middle East and Southeast Asia, Paleti said. Its AI tools help companies create work flows and pull up data on employee performance, attrition rate and other indicators.

The firm was founded in Hyderabad, India, in 2015 and has its international headquarters in Singapore. It serves more than 1,000 enterprise clients and is looking to take on human-resource software incumbents like SAP SE and Oracle Corp. as well as newer entrants like Deel Inc. as it expands into the US and other international markets.

“Growth will be the biggest focus and agenda that we have as a company for the next two to five years, and one of the geographies of intensity is definitely the US,” Paleti said.