Tokyo-based Japanese HR automation service provider SmartHR has secured $140 million in its Series E funding round co-anchored by private equity giant KKR and Teachers’ Venture Growth (TVG), the late-stage investment arm of Ontario Teachers’ Pension Plan.
The transaction marks KKR’s latest technology investment in Japan, where its portfolio includes Yayoi, a financial and accounting software provider for SMEs, and dataX, a marketing SaaS platform.
SmartHR, founded in 2013, provides tech-enabled human resources management solutions focused on employee management and administration, growth, talent management, and employee productivity. Its clients include large enterprises and SMEs.
The company raised about $143 million in its Series D funding round in 2021, led by US-based Light Street Capital. The round was also backed by Sequoia Heritage, Sequoia Capital Global Equities, Arena Holdings, Grayhound Capital, and Whale Rock Capital Management.
According to the latest announcement, SmartHR will use the fresh funds to accelerate its growth, including through the development of new solutions, talent acquisition, and organic and inorganic growth strategies, according to the announcement.
“SmartHR is an exceptional example of Japan’s new economy, and we are delighted to work with the company’s management, board, and TVG in supporting SmartHR in the next phase of its growth,” said Mukul Chawla, partner and head of Growth Equity, Asia Pacific, at KKR.
KKR said its investment in SmartHR was part of its Asia Next Generation Technology (Asia NGT) strategy.
Other investments made through Asia NGT include GrowSari, a B2B e-commerce platform for SMEs in the Philippines; KiotViet, a SaaS platform for SMEs in Vietnam; Privy, a digital identity provider in Indonesia; MUSINSA, an online fashion platform in Korea; Lenskart, an omni-channel eyewear retailer in India; and Advanced Navigation, a developer of AI-powered robotics in Australia.
KKR has invested $8 billion in Japan since 2010, becoming one of the several private equity giants that are sharply increasing investment in the country in response to economic growth and a changing corporate environment, according to a Nikkei Asia report.
