Japan’s SmartHR secures $140 million in Series E funding, fueled by strong demand for HR tech that pushes its ARR to $100 million

SmartHR, a cloud-based HR and labor management software startup, announced on Monday that it has secured $140 million in a Series E funding round led by KKR and Teachers’ Ventures Growth, an investment arm of Ontario Teachers’ Pension Plan. Existing investors also participated in the round.

This funding round, coming three years after their Series D round of $142.5 million, reflects ongoing investor interest in technologies that enhance efficiency in managing human resources, a significant cost for companies. SmartHR, founded in 2015 by Kensuke Naito and Shoji Miyata, has experienced robust demand for its SaaS platform. The platform aids enterprises in managing and optimizing HR operations.

As of February 2024, SmartHR’s annual recurring revenue (ARR) has reached $100 million, marking a notable increase from the $80 million in total revenue reported for the fiscal year 2023. The company did not disclose its current valuation following the latest funding round.