Indian HR Tech Startup Darwinbox Raises US$15M From Salesforce Ventures

compress-image-37

This funding marks Salesforce’s first investment in India and the only one in Asia outside of Japan.

Hyderabad, India headquartered enterprise human resource (HR) technology startup Darwinbox has raised US$15 million in its Series C funding round, the startup announced in a press release today.

The round was led by Salesforce Ventures, the investment arm of U.S. cloud-based software giant Salesforce, the press release stated. This is the tech giant’s first investment in India, and the first one in Asia outside of Japan.

Existing investors Sequoia Capital India, Lightspeed India, Endiya Partners, and 3one4 Capital also participated in the funding round, the statement said.

The fresh funding follows the $15 million Series B round led by Sequoia India raised in September 2019. The current round brings Darwinbox’s total capital haul to $35 million, the statement noted.

Founded in 2015, Darwinbox is a Software-as-a-Service (SaaS) HR-tech platform that handles an organization’s HR needs across the entire employee life cycle. Darwinbox’s platform helps enterprises with employee recruitment, onboarding, payroll, transactions like leaves, attendance, employee engagement, performance management, among other functions.

The startup currently serves over 500 firms including Puma, Nivea, MakeMyTrip, Tokopedia, Zilingo, the National Stock Exchange of India, ecommerce companies like Myntra and Tata CLiQ, foodtech startups like Swiggy and BigBasket, among others. These clients have over 1 million employees located across 60 countries, the statement noted.

Darwinbox competes with established global players like SAP and Oracle. It was recognized as one of the most preferred HCM platforms in APAC by Gartner in 2018.

The pandemic effect

As digital transformation gained priority amid the pandemic, Darwinbox witnessed a rapid surge in adoption, the statement said. It added that features like touchless attendance, digital rewards, digital hiring and onboarding, that come integrated with Darwinbox’s product suite were the key drivers of its adoption.

Darwinbox claims to have carried out 180 implementation of its product suite during the lockdowns last year, and recorded a revenue growth of 200%. The statement noted that the company’s revenue has grown 300% since its Series B round in late 2019.

“Globally, more and more enterprises are abandoning legacy offerings in favor of our modern, agile HCM (Human Capital Management) platform that helps them stay ahead of change,” Darwinbox Co-founder Jayant Paleti said in the statement.

Paleti told Bloomberg,”Since the pandemic, we are seeing a shift to the cloud within a few quarters that would have otherwise taken three or four years.”

According to Paleti, the startup will use the current investment to accelerate global expansion. Apart from India, Darwinbox currently has offices in Indonesia and Singapore as well.

Darwinbox Co-founder Chaitanya Peddi said, “Over the past years, we’ve shipped products at a rapid pace to become the most comprehensive HR suite and pioneered first-of-its-kind innovations to deliver superior employee experience.”

He added, “We will leverage the new investment to speed the introduction of exciting new solutions and advance R&D to deploy deep-technology capabilities.”

Huge opportunity ahead

According to a 2020 report by NASSCOM, India’s SaaS revenue reached $3.5 billion in FY2020 and is expected to grow 6 times to about $13-$15 billion by 2025. Moreover, the Indian SaaS industry has been growing 1.5 times faster than the global SaaS landscape. This indicates a huge potential for growth in the domestic market for startups like Darwinbox.

“India is home to one of the world’s youngest population, and by 2050, it is expected to account for over 18% of the global working age population,” said Salesforce India Chairperson and CEO Arundhati Bhattacharya. “This makes technology platforms like Darwinbox, that focuses on workforces, incredibly important.”

The potential for growth is not limited to the Indian market alone. Asia-Pacific (APAC) has the highest cloud adoption rate in the world, faster than the U.S. and Europe.

Salesforce Ventures Partner and Head of International Alex Kayyal said, “Cloud adoption in Asia is growing at a monumental pace and the pandemic has only further amplified the importance of going digital.”

Endiya Partners Managing Director Sateesh Andra said, “With the increased velocity of SaaS adoption in Asia, given the new mandate of Digital Workplace and the rising need for process automation, remote engagement and data-driven insights, a majority of the CHROs will turn to Darwinbox to implement strategies in order to deliver on their human capital’s promise.”

Images courtesy of Darwinbox

SHARE THIS STORY

Share on facebook
Share on twitter
Share on linkedin
Share on email

RELATED POSTS

CEOs That Crashed and Burned in 2022

CEOs That Crashed and Burned in 2022

As 2022 draws to a close, it is time to sit back and reflect on events that have unfolded this year—the good, the bad and the ugly. We saw massive layoffs in the tech space and a devastating crypto market crash with one crypto company going down after another. You must have seen article after article talking about the situation with Luna and Celsius as well as the recent bankruptcy filings of FTX and BlockFi.

TOKEN2049 London Recap

TOKEN2049 London Recap

TOKEN2049 London is the second part of the greater annual TOKEN2049 event. Every year, the event is held in both Singapore and London, bringing together a wide variety of Web3 participants from developers, thought leaders, founders and investors.

How Charming Men Get Away with Fraud

Bernie Madoff vs. FTX: How Charming Men Get Away with Fraud

The recent FTX scandal has all the trappings of a Netflix drama series where the business tycoon—once lauded for his power moves—is brought down by greed, selfishness and the judiciary system (The Wolf of Wall Street, much?). The CEO of crypto exchange FTX, Sam Bankman-Fried, has come into the spotlight for bringing about the downfall of FTX and his other company Alameda Research. In November 2022, he filed for bankruptcy for both companies after a devastating collapse in the public eye.

New to the Forex Market The Ultimate Toolkit for Success

New to the Forex Market? The Ultimate Toolkit for Success

Foreign exchange trading can be a tricky business. When it comes to choosing what tools will be the most effective in your forex trading journey, there are a few aspects to consider. Whether you are a brand-new trader or a seasoned veteran, some of these tools will always be handy to help you not only find the diamonds in the rough but also stay focused on your goals.

Looking Back on the Top Skincare Trends of 2022

Looking Back on the Top Skincare Trends of 2022

Going makeup free during the COVID-19 pandemic has whipped up interest in skincare, with people spending more on in-clinic aesthetic treatments and buying more skincare products. As of 2022, revenues in the beauty and personal care industry have reached US$534 billion. Of this, the skincare segment makes up a total revenue of US$153.30 billion, growing at a CAGR rate of 5.19% in the next five years.

Is It Ethical to Be “Overemployed”

Is It Ethical to Be “Overemployed”?

According to the American Bureau of Labor Statistics of August 2022, more than 7.5 million workers in the U.S. are overemployed, that is, they hold more than one job. With the pandemic leading to an increase in remote working and making people concerned about job safety, it doesn’t take a genius to see why people would choose to work multiple jobs.