SUMMARY
- Darwinbox has reported a 58% increase in its total revenue to Rs 392 crore in FY24.
- Darwinbox’s EBITDA margin improved by 17 percentage points over the same period.
- Darwinbox operates in India, Southeast Asia, the Middle East, the US, UK, and Canada.
Hyderabad-based HR tech platform Darwinbox has reported a 58% increase in its total revenue to Rs 392 crore during FY24. This growth was driven by the company’s overseas expansion efforts as well as its investments in research and development.
Moreover, Darwinbox’s EBITDA (earnings before interest, taxes, depreciation, and amortization) margin improved by 17 percentage points over the same period.
According to Darwinbox co-founder Jayant Paleti, the strong performance was a result of solid execution. The company has made significant investments in R&D and international expansion over the past two years, which have yielded promising results. In fact, international markets contributed more than 50% of the new annual recurring revenue (ARR) added this fiscal year, and this share is expected to grow further.
Darwinbox operates in India, Southeast Asia, the Middle East, the US, UK, and Canada. The startup’s international revenue grew by 87% in FY24, a 5-fold increase over the last two years. Southeast Asia has emerged as Darwinbox’s second-largest market after India, followed by the Middle East.
The company launched operations in North America 18 months ago as part of its global expansion strategy. Darwinbox currently serves around 1,000 enterprise customers globally, with approximately 600 of them in India.
Darwinbox has been investing heavily in R&D, allocating 46% of its operating revenue to this area last year – a 43% increase from the previous year. The company has also made strategic IP acquisitions, including a compensation management platform that has grown 15X since the acquisition.
The focus on product development has resulted in strong customer expansion, with a Net Revenue Retention (NRR) of 110%. About 25% of new revenue last year came from existing customers subscribing to additional offerings, while in India, this figure stood at 37%.
“We are committed to continuously investing in R&D to stay ahead of emerging market trends and leverage technological advancements such as Generative AI. This has already enabled us to integrate intelligent automation, conversational experiences and smart insights into our platform,” Paleti said.
Last month, Darwinbox launched a new payroll platform featuring the RIVeR (review, initiate, verify & e-approve, release & report) framework to enable 100% digital payroll processing.
Paleti added, “What worked in India will not necessarily work there. Starting from tweaks to product, localising it for that geography to the kind of people that you need to hire, your broader strategy – everything needs to be different.” The US market required increased marketing spend and new talent compared to Asian markets.
Founded in 2015, Darwinbox has been backed by global investors, including TCV, Microsoft, Salesforce Ventures, Peak XV, Lightspeed, and Endiya Partners. The platform currently has over 3 million employees across more than 900 enterprises in 130 countries. Darwinbox became a unicorn in January 2022 after raising $72 million in a funding round led by TCV.
The company began its international expansion in 2019 with a focus on Southeast Asia, followed by the Middle East in 2021. Darwinbox now operates in five Southeast Asian countries and plans to launch a global payroll product for seven new countries early next year.
Darwinbox recently elevated its CTO, Vineet Singh, as the fourth co-founder and launched a next-generation payroll framework. The company was also recognized as the Customers’ Choice in the 2024 Gartner Peer Insights for Cloud HCM Suites.
