KKR and Teachers’ Venture Growth Lead US$140 Million Series E Round in Leading Japanese Cloud-Native Human Resources Software Platform SmartHR
KKR, a global investment firm, and Teachers' Venture Growth (TVG), the venture arm of Ontario Teachers’ Pension Plan, have signed definitive agreements to lead a US$140 million Series E fundraise for SmartHR, a Japanese cloud-native human resources management platform. This investment will support SmartHR's growth through new solution development, talent acquisition, and organic and inorganic strategies.
Founded in 2013, SmartHR offers a comprehensive suite of tech-enabled HR management solutions. KKR's Mukul Chawla emphasized SmartHR's role in enhancing workforce productivity in Japan's digital transformation. TVG's Olivia Steedman highlighted SmartHR's innovative methods to improve workforce management for businesses of all sizes. This investment aligns with KKR’s Asia Next Generation Technology strategy and follows other notable tech investments in Japan and Asia.
- KKR and TVG jointly lead a US$140 million Series E fundraise for SmartHR.
- Funds will accelerate SmartHR's growth through new solutions and talent acquisition.
- SmartHR's comprehensive HR management solutions serve diverse businesses, including large enterprises and SMEs.
- This investment supports Japan's workforce productivity and digital transformation.
- KKR and TVG bring extensive global expertise and networks to SmartHR.
- None.
Insights
KKR and Teachers’ Venture Growth leading a
This investment places SmartHR under the spotlight, particularly in the context of Japan's increasing embrace of digitalization. The backing from KKR and TVG not only provides significant capital but also strategic value through their global expertise and networks, which can be pivotal in navigating competitive landscapes.
Retail investors should note that such major investments enhance SmartHR's financial stability and growth prospects. Additionally, the involvement of notable investors can often signal potential for future successful exits, such as IPOs or acquisitions.
However, it's essential to consider the competitive environment in the HR software sector. While SmartHR has established itself as a leader in Japan, the pressure to innovate continually and maintain a competitive edge will be high.
In summary, the investment underscores strong growth prospects but also comes with expectations of continued performance and innovation.
SmartHR operates within the Software as a Service (SaaS) domain, providing cloud-native solutions for HR management—a rapidly growing sector due to its scalable, subscription-based model. The emphasis on cloud-native technology means that SmartHR can offer flexible, scalable solutions that are highly efficient and adaptable to different business needs.
The Series E funding will likely be channeled into both enhancing current offerings and developing new ones. This could involve integrating advanced technologies like AI and machine learning to provide predictive analytics for workforce management, which can offer significant competitive advantages.
For investors, the continued innovation in product development is key. As SmartHR expands its suite of solutions, it can attract a broader client base ranging from SMEs to large enterprises, thereby boosting its revenue streams. The focus on talent acquisition also suggests an emphasis on building a robust team to drive these innovations.
It's important to watch how SmartHR leverages this funding to enhance its technological capabilities and maintain its leadership position in the market. The SaaS industry is highly competitive and continuous innovation is important for sustained growth.
SmartHR's focus on the Japanese market comes at a time when the country is undergoing significant digital transformation. The Japanese government's push towards greater digitalization and cloud adoption creates a favorable environment for SmartHR's growth.
With KKR and TVG's investment, SmartHR is well-positioned to capitalize on this trend. The company's diversified client base, which includes both large enterprises and SMEs, allows it to tap into various segments of the market, reducing dependency on any single client type.
From a market perspective, investors should consider the scalability of SmartHR's model. The ability to serve a wide range of businesses means that the company can grow organically by expanding its client base and through product development. Inorganic growth strategies, such as acquisitions, can further accelerate this process by quickly adding new capabilities and customer segments.
This strategic positioning in a growing market is a strong indicator of potential long-term success. However, market dynamics can change and it's important to monitor how effectively SmartHR can maintain its competitive edge and adapt to new challenges.
The investment will be used to accelerate SmartHR’s growth, including through the development of new solutions, talent acquisition, and organic and inorganic growth strategies.
Founded in 2013, SmartHR is a cloud-native human resources management platform that provides a suite of tech-enabled human resources management solutions, which are focused on employee management and administration, growth, talent management, and employee productivity. Through its comprehensive range of solutions, SmartHR serves a diversified spectrum of businesses including large enterprises and SMEs.
Mukul Chawla, Partner and Head of Growth Equity,
Olivia Steedman, Executive Managing Director and Global Head, Teachers’ Venture Growth, said, “SmartHR has demonstrated innovative ways to help companies of every size improve how they manage and develop their workforces. As Japanese companies increasingly transform their businesses with digital solutions, SmartHR is well-positioned to support a variety of their labor management needs. We look forward to working alongside KKR to help accelerate SmartHR’s growth journey while also leveraging our global expertise to find ways to be a value-adding partner.”
KKR makes its investment as part of its Asia Next Generation Technology (Asia NGT) strategy. This marks KKR’s latest technology investment in
About KKR
KKR is a leading global investment firm that offers alternative asset management as well as capital markets and insurance solutions. KKR aims to generate attractive investment returns by following a patient and disciplined investment approach, employing world-class people, and supporting growth in its portfolio companies and communities. KKR sponsors investment funds that invest in private equity, credit and real assets and has strategic partners that manage hedge funds. KKR’s insurance subsidiaries offer retirement, life and reinsurance products under the management of Global Atlantic Financial Group. References to KKR’s investments may include the activities of its sponsored funds and insurance subsidiaries. For additional information about KKR & Co. Inc. (NYSE: KKR), please visit KKR’s website at www.kkr.com. For additional information about Global Atlantic Financial Group, please visit Global Atlantic Financial Group’s website at www.globalatlantic.com.
About Teachers’ Venture Growth
Teachers’ Venture Growth (TVG) focuses on late-stage venture and growth equity investments in cutting-edge technology companies worldwide. We partner with founders with bold missions, looking to expand their product offering, scale geographically, and become the leaders in their markets. We bring long-term thinking and active investing to help build better businesses and a better world. We think globally and act locally through our direct presence across
TVG is part of the Ontario Teachers' Pension Plan Board (Ontario Teachers'), a global investor with net assets of
Our more than 450 investment professionals operate in key financial centres around the world and bring deep expertise in a broad range of sectors and industries. We are a fully funded defined benefit pension plan and have earned an annual total-fund net return of
For more information, visit otpp.com/teachersventuregrowth and follow us on LinkedIn.
About SmartHR
SmartHR was established on January 23, 2013. In November 2015, the Company launched a cloud-based HR and labor management software "SmartHR". In addition to functions that enable paperless HR and labor operations and improve operational efficiency, it offers talent management features such as "performance evaluation" and "placement simulation" that support organizational strategy using accumulated data. It also provides a "recruitment management" function that unifies recruitment activities and employee registration.
Furthermore, SmartHR provides a wide range of services that meet diverse customer needs through extensive integration with external systems and the application store "SmartHR Plus." SmartHR aims to eliminate social issues related to labor and support the improvement of productivity for all workers, striving to create a society where everyone can work in their own way.
View source version on businesswire.com: https://www.businesswire.com/news/home/20240630877753/en/
Media
For KKR Asia Pacific
Wei Jun Ong
+65 6922 5813
WeiJun.Ong@kkr.com
For Teachers’ Venture Growth
Dan Madge / James DeCosimo
media@otpp.com
Source: KKR
FAQ
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