Darwinbox’s Growth in FY25: HR Tech Unicorn Expands

Darwinbox, the HR tech unicorn, marked impressive growth in FY25, with operating revenue increasing by 50% compared to the previous year. This growth is attributed to its expansion into international markets and a stronger foothold in existing regions, as highlighted in a press release.

Financial Performance in FY25

The company’s revenue from operations surged to Rs 533.9 crore in FY25, up from Rs 334 crore in FY24. Notably, international sales accounted for 63% of new business, with overseas revenue climbing by 83% year-on-year. This marks the second consecutive year where Darwinbox has achieved over 80% growth in this sector.

Success in Global Markets

Darwinbox’s operations in the U.S., launched two years ago, are now beginning to show significant progress. The company also reported robust growth in the Southeast Asia (SEA) and Middle East and North Africa (MENA) markets.

Improvement in Bottom Line

Regarding overall performance, Darwinbox saw a 12% improvement in its adjusted net loss over FY24, excluding non-cash Employee Stock Ownership Plan (ESOP) expenses. When investments in the U.S. division are excluded, this adjusted net loss decreased by 42% year-on-year, according to the firm’s press release.

Product Offerings and Customer Base

Based in Hyderabad, Darwinbox provides a comprehensive cloud-based HR management platform, which includes services such as recruitment, payroll, employee engagement, talent management, and data analytics. The majority of the company’s revenue stems from its operations in Southeast Asia and India, boasting over 1,016 enterprise clients worldwide.

Funding and Employee Initiatives

As per various sources from a startup data intelligence platform, Darwinbox has raised over $290 million across several funding rounds, including a notable $140 million round in March, co-led by Partners Group and KKR. Additionally, the company recently allocated $21 million in ESOPs to its workforce, a development that was initially reported by Startup Superb. This follows an ESOP buyback of Rs 86 crore ($10 million) that took place in June this year.