SmartHR, a cloud-based human resources and labor management software startup, has secured $140 million in a funding round led by KKR and Teachers’ Ventures Growth, with participation from existing investors. The Series E round marks a significant injection of capital for the company, which has seen strong demand for its SaaS platform in recent years.
Founded in 2015 by Kensuke Naito and Shoji Miyata, SmartHR has established itself as a leader in the HR tech space, with its annual recurring revenue (ARR) reaching $100 million as of February 2024. This growth is in line with the robust demand for HR tech seen globally, with companies like Rippling, Gusto, and Deel experiencing significant revenue growth.
The HR tech market is estimated to be worth $81.84 billion by 2032, with major players like Rippling, Gusto, and Deel having raised significant amounts of capital. SmartHR’s peers in Japan include back-office software players such as Works Human Intelligence, freee, and Moneyforward.
The company plans to use the new capital to develop new solutions, hire additional staff, and pursue organic and inorganic growth strategies. With its current employee count standing at around 1,000, SmartHR is well-positioned to continue its growth trajectory.
