Hyderabad-based HR tech unicorn Darwinbox is poised to raise $50 million from the Ontario Teachers’ Pension Plan (OTPP), a leading Canadian pension fund. The deal, currently in advanced stages, marks a significant moment for India’s SaaS landscape, valuing Darwinbox at over $1 billion.
The investment will be a mix of primary and secondary transactions, with Peak XV Partners (formerly Sequoia Capital India) partially exiting its stake. The exit is expected to fetch Peak XV a 10x return on its original investment, made back in 2019.
Global Confidence in Indian SaaS
This isn’t OTPP’s first bet in the HR tech space. The fund had earlier co-led a $140 million round in Japan’s SmartHR in July 2024. Its Darwinbox investment reinforces growing global interest in Asia-Pacific SaaS ventures, particularly from India.
The structure of this round includes both new shares and existing investor stock. Approximately 60% of the deal is secondary, allowing early backers to realize returns.
Darwinbox’s Enterprise Footprint
Founded in 2015, Darwinbox is transforming how enterprises manage their human resources. From recruitment and onboarding to payroll, attendance, and employee engagement, Darwinbox’s end-to-end platform is used by 1,000+ enterprises across 130 countries.
Its client portfolio includes Starbucks, Cigna, Nivea, WeWork, and Crisil, showcasing its strong global footprint. The platform’s tech-first approach and rapid scalability have been key drivers of investor confidence.
Recent Funding Momentum
In March 2024, Darwinbox closed a $140 million round led by KKR and Partners Group, which valued the company at $950 million. The OTPP investment takes the company into unicorn+ territory, a major milestone for a Hyderabad-founded startup.
Peak XV’s Strategic Exit
Early investor Peak XV Partners is partially cashing out of its position after six years. The investment firm is expected to achieve tenfold returns, marking one of its more successful SaaS bets in recent years.
The exit also signals increased maturity and liquidity in India’s late-stage startup ecosystem, especially in the enterprise SaaS segment.
Hyderabad: The New SaaS Capital?
Darwinbox’s journey is a testament to Hyderabad’s growing influence in the SaaS ecosystem. With marquee investors and global clientele, the city continues to nurture companies that scale internationally.
As Darwinbox gears up for its next growth phase, this investment is expected to fund global expansion, R&D, and further customer acquisition.
