Saturday, October 4, 2025

Klaar Scores $5M for AI-Based Performance Management

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San Francisco-based Klaar, a next-generation performance management platform, has raised USD 5 million in a Series A funding round. The investment was led by Prime Venture Partners, with participation from existing backer Shastra VC. The fresh infusion of capital will help Klaar expand in the US market, attract new clients, and significantly strengthen its engineering hub in India.

The company revealed that its Bengaluru-based AI and engineering team will grow by nearly 40 percent in the next 12 months. The India hub will play a central role in building and innovating the company’s AI-powered performance solutions for global clients.

Klaar Performance Management Platform

Founded in 2022 by Sharthok Chakraborty and Atri Roy, Klaar was born out of the founders’ personal experiences of struggling with outdated HR tools. Chakraborty, who worked as an HR professional for years, highlighted the operational frustrations that led to building Klaar.

“It is a platform that HR teams will actually want to implement,” said Chakraborty. His co-founder and COO, Atri Roy, added that Klaar blends deep HR expertise with advanced technology, enabling organisations to turn performance management into a strategic advantage rather than a painful process.

Tools That Drive Impact

Klaar provides a comprehensive suite of tools that includes goals and OKRs, one-on-one check-ins, reviews, AI-powered calibration, surveys, 360-degree feedback, and personalised development plans. The platform is designed to provide data-driven insights that reduce bias in performance evaluations, while also helping leaders align their teams with clear and measurable outcomes.

fresh funding
This funding was led by Prime Venture Partners, with participation from existing backer Shastra VC.

By using AI for calibration and feedback, Klaar enables organisations to address one of the biggest challenges in HR—ensuring that performance reviews are fair, transparent, and consistent. This innovation is particularly valuable in hybrid work environments, where employee engagement and retention are more difficult to manage.

Expanding US Presence

Klaar already counts Vidyard, Armstrong, and Zenwork among its North American clients, a sign of its rising acceptance in the global HR tech market. With the new funding, the company plans to deepen its presence in the US, where demand for modern HR solutions is surging.

The expansion comes at a time when HR leaders face mounting pressure to not just retain employees but also boost morale and productivity in hybrid workplaces. Klaar positions itself as the solution that integrates both technology and HR know-how, bridging gaps that traditional tools fail to address.

Competing in HRtech Space

The performance management space is already crowded with platforms such as Lattice, 15Five, CultureAmp, Leapsome, and Betterworks. However, Klaar believes its AI-first approach, human-centric design, and India-based engineering advantage give it a competitive edge.

By marrying innovation with practical HR needs, Klaar is targeting companies that want not just tools but outcomes—ensuring that performance management evolves from a checkbox exercise to a driver of business growth.

Klaar’s Vision Ahead

The company’s journey from a startup to a fast-growing HRtech player reflects the rising demand for intelligent HR platforms that can scale across geographies. With support from Prime Venture Partners and Shastra VC, Klaar aims to become the go-to solution for organisations looking to manage talent more effectively.

As it builds momentum, Klaar is not only reshaping performance reviews but also redefining employee engagement and growth strategies. By turning pain points into strategic advantages, the platform hopes to make performance management an area where both companies and employees truly thrive.

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