Microsoft, Salesforce eye Darwinbox buyout ahead of IPO

KKR-backed HR software firm Darwinbox is drawing buyout interest from Microsoft, Salesforce, and US-based ADP, even as it prepares for an IPO in the medium term, Livemint and Hindustan Times report, citing three unnamed sources. The sources say the suitors have approached the founders and board, with the company now likely valued at Rs 15,000-16,500 crore ($1.8-2 billion). Darwinbox raised Rs 1,160 crore ($140 million) at a roughly Rs 8,300 crore ($1 billion) valuation last year.

A Darwinbox spokesperson denied stake-sale talks and said the company plans to pursue an IPO and is on track. Livemint notes that emailed queries to Microsoft and Salesforce were unanswered, and ADP declined to comment. Both outlets report that Salesforce and Microsoft want to add payroll services to their offerings, while ADP seeks to deepen expertise. The board has not yet decided on the offers.

Darwinbox reported operating revenue of Rs 534 crore for FY25, up 50% year-on-year, Livemint adds, citing an Entrackr report. International markets contributed 63% of new sales. Founded in 2015, the firm has over 1,000 clients including Adani and Starbucks.