AI/ML

Klaar Raises $5M Series A Funding & Expands to the U.S.

by VARINDIA 2025-09-11

Klaar is setting a new benchmark in AI-powered HR solutions, transforming how organizations approach performance management, employee development, and talent engagement—making it an indispensable partner in today’s competitive workforce landscape.

Klaar has successfully closed a $5 million Series A funding round, led by Prime Venture Partners, and officially launched its AI-powered performance management platform in the United States. The new round also saw additional investments from existing backer Shastra VC, highlighting growing investor confidence in Klaar’s mission to transform human capital management, employee performance reviews, and talent development using advanced artificial intelligence.

With this funding, Klaar plans to accelerate its U.S. market expansion, onboard new clients, and scale its engineering team in India by up to 40% over the next year. The India-based hub will play a pivotal role in developing AI-driven HR solutions, focusing on machine learning, predictive analytics, and data-driven talent management.

Reinventing Performance Management for Today’s Workforce

Traditional performance management tools have long frustrated HR leaders, CEOs, and employees. A staggering 98% of CHROs report dissatisfaction with current systems, citing outdated, unintuitive, and non-impactful tools. Klaar’s platform addresses these challenges by offering real-time insights, personalized coaching, and automated calibrations to ensure fairness and equity across teams. The platform’s AI-backed algorithms help eliminate biases, align individual and team goals, and foster employee engagement, productivity, and career growth.

Klaar’s suite of solutions includes:

● Goals & OKRs: Track progress and outcomes with precision.

● Reviews & 1:1s: Enhance feedback and mentorship opportunities.

● Calibrations: Leverage AI for unbiased talent decisions.

● IDPs & Competencies: Build personalized development plans for future leaders.

● Surveys & 360 Feedback: Gain comprehensive performance insights.

The platform seamlessly integrates with tools and workflows already used by businesses, reducing administrative burden and enabling real-time performance tracking, employee engagement analytics, and predictive career planning.

Expert-Led, AI-Enhanced HR Innovation

Lana Peters, Klaar’s Chief Revenue and Customer Experience Officer, emphasized how the platform helps leaders drive mentorship, employee coaching, and talent optimization. Co-founders Sharthok Chakraborty and Atri Roy, both experienced HR professionals, designed Klaar to tackle operational pain points with user-friendly interfaces, cutting-edge technology, and AI-powered feedback loops.

Klaar is already helping companies like Vidyard, Armstrong, and Zenwork revolutionize how performance conversations happen, driving stronger business results and employee satisfaction. With hybrid work models on the rise, Klaar’s platform equips HR departments, technology companies, finance firms, and professional service organizations with the tools to foster engagement, enhance employee retention, and boost productivity.