Klaar Raises $5M to Launch AI-Powered HR Platform in the U.S.

Klaar, a performance management platform designed by HR leaders for HR leaders, has officially entered the U.S. market after closing a $5 million Series A round. The funding was led by Prime Venture Partners, with expanded participation from Shastra VC, reflecting strong investor confidence in Klaar’s vision.

The new capital will drive Klaar’s go-to-market expansion in the U.S., accelerate enterprise customer onboarding, and strengthen its India-based engineering hub. The company plans to grow its AI and engineering teams in India by nearly 40% over the next year, ensuring rapid product innovation and scale.

Redefining Performance Management

Performance reviews have long been a pain point for both HR leaders and employees. Research shows 98% of CHROs are unhappy with current systems, citing outdated tools that lack impact and fairness. Employees feel similarly—just one in five say their reviews are fair or motivating.

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Klaar addresses these challenges with an AI-driven performance management platform that delivers clarity, predictive insights, and actionable feedback. The solution aligns organizational goals with team and individual objectives while providing real-time data to reduce bias and improve decision-making.

Platform Highlights

Goals & OKRs – Keeps employees aligned with outcomes that matter.

Reviews & 1:1s – Streamlines continuous coaching and conversations.

Calibrations – AI-backed fairness in talent decisions.

Development Plans & Competencies – Builds future-ready leaders.

360 Feedback & Surveys – Provides a full-picture view of performance and engagement.

Seamlessly embedded into everyday workflows, Klaar minimizes administrative effort and equips leaders with tools to drive growth, engagement, and equity across their workforce.

Industry Endorsements

“Klaar powers timely, meaningful conversations that help leaders coach effectively and build strong teams,” said Lana Peters, Chief Revenue and Customer Experience Officer, a seasoned HR tech leader with more than 25 years of experience.

Amit Somani, Managing Partner at Prime Venture Partners, added: “Performance management is both under-served and mission-critical. Klaar’s HR-first, AI-native approach makes it possible to align teams, boost engagement, and elevate performance management into a strategic business advantage.”

Reflecting on the company’s journey, Sharthok Chakraborty, Co-Founder and CEO, said: “We built Klaar to solve the exact frustrations we experienced as HR leaders. Our mission is to replace outdated systems with a platform that actually helps companies make performance management a driver of success.” Atri Roy, Co-Founder and COO, emphasized that Klaar combines deep HR expertise with advanced AI capabilities to transform talent development.

Building U.S. Momentum

Klaar has already partnered with forward-thinking companies in North America, including Vidyard, Armstrong, and Zenwork.

Seth Givens, HR Director at Zenwork, shared: “Klaar has changed how we approach performance conversations. It gives our teams clarity, actionable insights, and the ability to focus on growth. It has quickly become an indispensable tool for building high-performing teams at Zenwork.”

The Road Ahead

As hybrid and distributed work reshape the future of organizations, Klaar enters the U.S. market at a critical time for HR leaders. By blending real-world HR expertise with AI innovation, Klaar aims to set a new standard for performance management across industries including technology, professional services, finance, and manufacturing.

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