Darwinbox, the Hyderabad-based human capital management (HCM) platform, is on the verge of securing a significant investment from the Ontario Teachers’ Pension Plan (OTPP), one of the world’s largest institutional investors. The proposed deal involves OTPP investing $50 million in Darwinbox, which would place the company’s valuation above the $1 billion mark, officially making it a unicorn in the enterprise software space. This transaction will consist of both primary capital infusion and secondary share sales, allowing existing investors like Peak XV Partners to partially exit their holdings.

Founded in 2015, Darwinbox has steadily grown into a global HR technology provider offering a cloud-native platform that serves over 1,000 clients across more than 130 countries. The company’s clientele includes some of the most recognizable names worldwide, such as Starbucks, Nivea, Cigna, WeWork, and Crisil, reflecting its wide acceptance across various industries. Darwinbox’s growth trajectory has been impressive, marked by a 58% year-on-year increase in total revenue, which reached ₹392 crore in the fiscal year 2023-24.

The company’s rapid rise in the competitive HR SaaS market is supported by robust funding rounds. In March 2025, Darwinbox closed a $140 million financing round led by private equity giants KKR and Partners Group, bringing in substantial capital to fuel further expansion and product innovation. The latest investment by OTPP underscores the increasing interest of global institutional investors in India’s tech startups, particularly those focused on enterprise solutions that are gaining traction internationally.

This partnership with OTPP is strategic for Darwinbox as it not only brings in fresh capital but also enhances the company’s credibility on the global stage. OTPP has a history of investing in technology-driven companies in the Asia-Pacific region, including its recent co-lead role in a $140 million funding round for Japan’s SmartHR, another prominent HR technology firm. Their involvement with Darwinbox is expected to support the company’s ambitions to expand deeper into international markets such as the United States.

The investment will enable Darwinbox to accelerate its product development and scale operations to meet the growing demand for advanced HR management solutions. As organizations worldwide increasingly adopt cloud-based and AI-enabled platforms for managing their workforce, Darwinbox’s cloud-native architecture positions it well to capitalize on these trends. The capital infusion will likely be directed towards enhancing features, expanding the sales and marketing footprint, and investing in customer support services to maintain its competitive edge.

Furthermore, this deal represents a milestone in the Indian startup ecosystem, highlighting the maturity of the HR SaaS sector and its ability to attract substantial foreign capital. Institutional investments like this not only provide financial backing but also bring strategic partnerships and industry expertise, which can be crucial for startups aiming to scale globally.

The secondary share sale component of the deal also allows early investors such as Peak XV Partners to partially realize returns on their investments made over six years ago. This liquidity event signals growing confidence in the company’s long-term growth prospects and helps maintain a healthy investor base committed to supporting Darwinbox’s future development.

As the transaction progresses, it is anticipated to strengthen Darwinbox’s position as a leading global HR technology provider and boost its growth trajectory in the competitive SaaS landscape. The association with OTPP is expected to open new avenues for collaborations and business opportunities, reinforcing Darwinbox’s mission to simplify human capital management for enterprises worldwide.

In summary, the Ontario Teachers’ Pension Plan’s impending $50 million investment in Darwinbox marks a significant vote of confidence in the company’s business model and growth potential. With this partnership, Darwinbox is set to accelerate its expansion, innovate further, and solidify its status as a billion-dollar unicorn in the global HR tech arena.