SmartHR, a cloud-based startup specializing in human resources and labor management software, announced on Monday that it has successfully secured $140 million in funding. The funding round was led by KKR and Teachers’ Ventures Growth, an investment arm of Ontario Teachers’ Pension Plan, with participation from existing investors.
This Series E funding round comes three years after SmartHR raised $142.5 million in a Series D round, valuing the company at $1.6 billion. This recent funding indicates continued investor interest in technology that enhances companies’ ability to efficiently manage their workforce.
SmartHR, founded in 2015 by Kensuke Naito and Shoji Miyata, has experienced significant growth as demand for its SaaS platform has surged in recent years. The company reported an annual recurring revenue (ARR) of $100 million as of February 2024, up from $80 million in total revenue in FY 2023.
The HR tech industry is witnessing substantial growth globally, with companies like Rippling, Gusto, and Deel experiencing significant ARR increases. This market is expected to reach $81.84 billion by 2032, offering abundant opportunities for startups in the sector.
SmartHR plans to utilize the new capital to develop innovative solutions, expand its team, and explore growth opportunities through acquisitions. With approximately 1,000 employees, the company aims to leverage its expertise in labor management to drive rapid product development.
SmartHR’s competitive edge in Japan lies in its ability to access accurate employee data through labor management, positioning it as a definitive HR system. This advantage allows the company to launch new products swiftly and efficiently.
Previous investors in SmartHR include Light Street Capital, Sequoia Capital Global Equities, and Whale Rock.
