Hyderabad-based SaaS unicorn Darwinbox, a trailblazer in AI-driven human resource technology, has successfully wrapped up an Rs 86 crore employee stock ownership plan (ESOP) buyback — marking the
Hyderabad-based SaaS unicorn Darwinbox, a trailblazer in AI-driven human resource technology, has successfully wrapped up an Rs 86 crore employee stock ownership plan (ESOP) buyback — marking the largest such event in the company’s history. This buyback, the third liquidity event in just four years, involved over 350 employees across Darwinbox’s 11 global offices.
Unlike many startups that rely on external investors to facilitate ESOP buybacks, Darwinbox chose to use its own internal capital to repurchase stock options from employees. This growing trend among high-growth startups reflects a deep commitment to employee wealth creation and fostering a culture of ownership.
“At Darwinbox, we’ve always believed that those who help build value should share in it,” said Jayant Paleti, Co-founder of Darwinbox. “Even as we invest deeply in innovation and global growth, we remain equally committed to creating meaningful outcomes for our people. This buyback, like the ones before, reflects our belief in sharing success with our people and building a culture of ownership.”
Founded in 2015, Darwinbox has rapidly risen to become a key player in the digitizing HR tech space. The company offers cloud-based Human Capital Management (HCM) software that supports enterprises through the entire employee lifecycle — from onboarding and payroll to performance management and employee engagement.
What sets Darwinbox apart is its use of disruptive AI-powered technology designed to enhance employee experiences and streamline HR processes. The platform serves over 4 million employees globally, with more than 1,000 enterprise customers spread across 130 countries.
Darwinbox’s growth trajectory has been fueled by robust investor confidence, including backing from heavyweights such as KKR, Partners Group, TCV, Microsoft, Salesforce Ventures, Peak XV, Lightspeed, and Endiya Partners.
Earlier this year, the company raised $140 million in a predominantly secondary round co-led by private equity giants KKR and Partners Group. This funding round also saw participation from early investor Lightspeed, underscoring sustained enthusiasm from both venture and private equity investors.
ESOPs have become a powerful incentive mechanism in startups, aligning employees’ interests with company growth. By buying back shares directly from employees, Darwinbox is enabling its talent to realize the financial rewards of their contributions without depending on external liquidity events.
This move not only strengthens employee loyalty but also highlights Darwinbox’s confidence in its own valuation and future prospects.
As the global HR landscape continues to evolve, Darwinbox is well-positioned to capitalize on increasing demand for integrated, AI-powered HR solutions. The company’s ongoing commitment to employee welfare, innovation, and global expansion signals a bright future for this Hyderabad-born unicorn.
With this significant ESOP buyback, Darwinbox is sending a clear message: its people are at the heart of its success, and shared value creation will remain a cornerstone as it scales new heights in the HRtech industry.
