HR tech SaaS firm Darwinbox reports 58% jump in revenue to Rs 392 crore in FY24

Darwinbox, an HRTech Software-as-a-Service (SaaS) firm, reported a 58% year-on-year (YoY) increase in revenue for FY24, reaching Rs 392 crore.

This significant growth is attributed to the company's international expansion and integration of artificial intelligence (AI)- powered tools into its product offerings.

Darwinbox co-founder Jayant Paleti highlighted the firm's commitment to innovation and global outreach, which played a crucial role in achieving this milestone.

Over the past two years, the company has witnessed a 3.2x rise in revenue, further bolstered by an 87% increase in international revenue.

Focus on international markets and product development 

Darwinbox expanded its operations into North America, Southeast Asia, and the Middle East, contributing over 50% of new annual recurring revenue (ARR) in FY24.

The company’s expansion strategy has yielded impressive results, with its global revenue contributing significantly to the overall figures.

In addition to this geographic diversification, Darwinbox invested heavily in research and development (R&D), allocating 46% of its operating revenue towards innovation, enabling product advancements such as AI-driven tools and a new global payroll product set to launch in seven countries next year.

Improved financial efficiency and profitability

Despite strong revenue growth, Darwinbox has not yet turned profitable. The company's operating cash burn was reduced by 12% in FY24, while its EBITDA (earnings before interest, taxes, depreciation, and amortization) margin improved by 17 percentage points.

Co-founder Jayant Paleti emphasized that the company's focus remains on long-term growth, and profitability is not an immediate priority. He assured stakeholders that Darwinbox remains financially secure, with a strong balance sheet supporting its strategic decisions to invest in R&D and global expansion.

Existing customers and new product innovations 

 A significant portion of Darwinbox’s revenue in FY24 came from existing customers, with 25% of new revenue generated through the adoption of additional services by its current client base.

The company’s Net Revenue Retention (NRR) rate stood at 110%, reflecting high customer satisfaction and retention.

Darwinbox has continuously worked on expanding its product portfolio, with AI-driven innovations and an upcoming global payroll solution for seven countries, which are expected to contribute to further revenue growth.

Who are the founders?

Founded in 2015 by Jayant Paleti, Rohit Chennamaneni, and Chaitanya Peddi, Darwinbox has grown into a prominent player in the HRTech space, serving over 900 enterprises and 3 million employees globally.

The firm is backed by several high-profile investors, including Sequoia, Lightspeed, and Microsoft. With plans for an initial public offering (IPO) in the next two to four years, Darwinbox aims to continue its focus on AI-powered HR solutions and international market expansion to drive future growth.