News
In Brief
- US market entry. Klaar launches its AI-based HR platform in the US.
- Funding milestone. Secures $5M Series A funding led by Prime Venture Partners.
- HR leader impact. Modernizes performance management with fairer, data-driven systems.
Klaar, an HR tech company founded in Bengaluru, India in 2021, has launched its AI-powered performance management platform in the United States after closing a $5 million Series A round led by Prime Venture Partners. The company stated it will use the funding to support expansion into the U.S., onboarding new clients and continued product scaling.
The company positions itself as a solution to a problem many HR leaders know well: outdated and clunky performance management systems. According to Klaar, 98% of CHROs say they are dissatisfied with current tools. Employees aren’t impressed either — only one in five believe performance reviews are fair or lead to better performance.
How Klaar Fits into a Changing HR Tech Landscape
AI adoption in HR has been accelerating. In 2024, 58% of HR professionals reported using AI weekly; that figure has already climbed to 72%. Klaar enters the U.S. market at a moment when many organizations are actively reassessing their systems and looking for AI-driven alternatives.
The company’s perspective is that AI should enhance, not replace, human decision-making. Its platform is designed to deliver unbiased, data-backed insights while still leaving room for managers and HR teams to make final calls. The challenge, as with most AI in HR, is ensuring that systems are trained on inclusive data and don’t reinforce existing biases.
Having spent years as an HR professional, constantly battling with clunky and outdated tools, I know firsthand how frustrating performance management can be.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 these operational pain points.
- Sharthok Chakraborty
Co-Founder and CEO of Klaar
What Klaar's Platform Offers
Klaar describes its platform as a way to turn performance management from a “painful process into a driver of growth.” It integrates with existing workflows and apps, aiming to cut down on admin while giving managers better inputs for conversations.
Key features include:
| Capability | Description |
|---|---|
| Goals and OKRs | Aligning teams with organizational outcomes |
| Reviews and 1:1s | Streamlining feedback and coaching conversations, with AI assistance to draft and guide. |
| AI-Backed Calibrations | Using AI to support fair, data-driven talent decisions. |
| IDPs and Competencies | Building tailored development plans. |
| Surveys and 360s | Offering a more holistic view of performance and engagement. |
One of the platform’s bigger claims is speed: it says it can shrink a typical 360° nomination process from weeks to hours.
From Bengaluru to the U.S.
Before its U.S. entry, Klaar had already raised $800K in seed funding in 2023 and built up a client base in India, including companies like Philips, ITC, Urban Company, Razorpay, and Lead School. At that stage, the focus was on proving that performance management could be simplified and accelerated. The Series A and U.S. launch represent the next stage of that plan: scaling internationally and competing directly in one of the biggest HR tech markets.
The Bigger Picture
Klaar’s story reflects a broader shift in HR technology: companies want tools that feel modern, integrate easily into daily workflows and actually drive better employee outcomes. Legacy systems haven’t kept pace, and startups like Klaar see an opportunity to step in.
For HR leaders, the question is less about whether to adopt AI — it’s about which platforms can genuinely improve fairness, engagement and alignment without adding new layers of complexity. Klaar is betting that its mix of predictive insights, AI nudges and usability can make that case.
Have a tip to share with our editorial team? Drop us a line:
