HR technology unicorn Darwinbox has completed a significant employee stock ownership plan buyback worth ₹86 crore, marking its largest such round in four years. The initiative involved repurchasing ESOPs from around 350 employees, reinforcing the startup’s focus on talent retention and wealth creation for its workforce.

The buyback represents Darwinbox’s third such round since its inception, with this latest effort being the most substantial in scale. A majority of Indian startups now frequently use ESOP buybacks to recognize contributions and bolster staff loyalty—a trend Darwinbox is embracing with this landmark move. For the employees, the buyback translates into immediate financial benefit—some of whom have been with the company since its early days. It also signals management’s commitment to sharing the value generated from the company’s recent successes.

Founded in 2015, Darwinbox has emerged as a fast-growing SaaS platform focused on human resource management. Having raised $140 million earlier this year in a round led by global private equity majors, the company achieved a valuation of approximately $950 million. The fresh funds are being directed toward AI-driven product innovation and global expansion efforts. This financial milestone underscores Darwinbox’s robust business trajectory. Backed by investors such as Partners Group, KKR, Microsoft, Salesforce Ventures, Sequoia India, Lightspeed, and Endiya, Darwinbox serves more than 900 enterprise customers spanning over three million users in 130 countries. Its revenue surged by 58% year-over-year in FY24, reaching ₹393 crore.

The ESOP buyback complements this growth by rewarding employees who contributed to the company’s ascent. The move aligns with its ongoing investments in R&D, including proprietary AI features such as its virtual HR assistant and gen-AI reporting tools, which enhance both the product and employee experience.

Darwinbox’s leadership notes that the buyback strengthens the company’s employee value proposition at a critical juncture. With aggressive expansion in markets like North America, Southeast Asia, the Middle East, and the UK, the firm requires a motivated team equipped to scale operations globally. Giving employees a financial upside—on par with early-stage founders—helps maintain engagement, drive performance, and reduce attrition.

Analysts point out that widespread ESOP programs are becoming more strategic as Indian startups mature. As liquidity events like IPOs become less predictable, buybacks serve as tangible rewards for employees who have built value over years and may not have seen earlier exit opportunities.

Darwinbox’s ₹86 crore repurchase is likely to boost morale across engineering, product, sales, and customer success teams. It also positions the company favorably ahead of potential global listing ambitions, where talent retention could be a critical factor.

In a competitive HR-tech landscape facing legacy giants like SAP, Oracle, and Workday, Darwinbox stands out by offering a modern, mobile-first, AI-centric platform. The ESOP initiative reinforces the company’s reputation as a people-focused employer in Saas, capable of attracting and retaining top global talent.

With its latest ESOP buyback, Darwinbox sends a clear message: it values its people and believes shared success drives long-term growth. As the company continues to expand its technological and geographic footprint, this employee-first approach may serve as a differentiator in attracting and retaining world-class talent.