KKR, Partners Group to lead Darwinbox funding round

Subscribe to enjoy similar stories. Global private equity firms KKR and Partners Group are nearing a deal to lead a $120-150 million funding round in HR-tech services provider Darwinbox, said three people aware of the development, as private equity firms continue to hunt for mature tech startups closer to profitability. The deal, likely to value the company at around $950 million, will be a mix of primary and secondary fundraise, the people said on the condition of anonymity.

“While KKR is pumping in $50 million in the company, Partners Group will pool in $55 million," the first person quoted above said. Early investors Peak XV, Lightspeed Ventures, StartupXseed and Endiya Partners are likely to exit their investment either in part or full in a secondary round. Mint was the first to report the investors’ intent to sell in July 2024.

In 2022, a $72-million Series D funding round led by Technology Crossover Ventures (TCV), took Darwinbox into the coveted unicorn club of companies valued over a billion dollars. In January 2023, it raised an undisclosed amount from Microsoft and State Bank of India as part of an extended Series D round at the same valuation. Also read | Darwinbox’s early investors look to exit at a 10-15% discount amid SaaS slowdown The latest funding is being seen as a capitalization table realignment by the company ahead of its planned initial public offering (IPO) later this year.

The company is yet to pick bankers and start a formal process. Avendus Capital is helping the company with the fundraise. Emailed queries to KKR, Partners Group, Endiya Partner, Lightspeed Ventures and Avendus Capital did not elicit any response.