Klaar, the San Francisco-based performance management platform, has raised $5 million in a Series A funding round led by Prime Venture Partners. The round also saw participation from existing investor Shastra VC.
The fresh funds raised will be used to fuel its US go-to-market initiatives, new client onboarding, and the scaling of its India engineering hub, where the company plans to increase its engineering and AI workforce by up to 40% over the next 12 months. The India hub will be central to building and innovating Klaar’s AI-powered solutions.
Founded in 2022 by Sharthok Chakraborty and Atri Roy, Klaar is an AI-powered performance management platform that facilitates goal setting, performance reviews, 360-degree feedback, and employee engagement surveys.
The platform uses AI to provide real-time insights, predict outcomes, and identify areas for improvement in employee performance and development. Integrations with various business tools streamline workflows and eliminate redundant tasks. The system supports employee career development through personalized insights and resources, enabling data-driven decision-making for talent management.
Sharthok Chakraborty, Co-Founder and CEO of Klaar, said, “Having spent years as an HR professional, constantly battling with clunky and outdated tools, I know firsthand how frustrating performance management can be. We built Klaar to solve those operational pain points.”
Atri Roy, Co-Founder and COO, Klaar, said, “It’s a tool that HR teams will actually want to implement, combining deep HR expertise with cutting-edge technology so organizations can finally make performance management a strategic advantage.”
Lana Peters, Chief Revenue and Customer Experience Officer of Klaar, said, “Klaar powers timely, meaningful conversations that help any leader effectively mentor and coach employees and build a high-performing team. The Klaar executive team brings deep industry knowledge of human capital management, enabling organizations to optimize talent development, foster a strong culture, and deliver tangible results.”
Amit Somani, Managing Partner, Prime VP, said, “Performance management has remained one of the most under-served yet mission-critical areas in the HR technology landscape. Organizations globally are struggling to engage talent, align teams, and drive productivity. Klaar is tackling this challenge with a differentiated, HR-first, AI-powered platform that brings clarity, fairness, and effectiveness to performance conversations. We are excited to back Klaar as they embark on their journey towards becoming a global category leader in this space.”
