DianaHR, an HR-as-a-service platform for small and medium-sized businesses, announced Sept. 15 that it has raised a $3.7 million seed round led by SNR Ventures with participation from General Catalyst, Y Combinator, and unicorn founders, including Mercury, Twitch, and Dropbox.
The San Francisco-based company said it will use the funds to expand its engineering and operations teams so it can accelerate its product roadmap, expand its capacity, and take on more clients from its waitlist. DianaHR’s revenue has doubled each quarter since the release of its product earlier this year.
“DianaHR’s main competition are the 54,000 HR consultancies in the U.S. who alongside payroll software capture $100 billion in spending,” SNR Ventures founder Kevin Mahaffey said in a statement. “This field resembles the taxi industry prior to Uber—ripe for disruption. DianaHR’s HR-as-a-service platform can provide services much more quickly and accurately and at a far lower cost than consultancies. This is the right team to spark an AI revolution in HR, and we’re excited to be a part of it.”
According to DianaHR founder Upeka Bee, business owners want to grow their business and keep overhead low, not deal with HR and payroll tasks. Bee, the former head of engineering for Gusto, recognized that many SMB owners still spend 15-plus hours a week on HR tasks, and that an HR expert—rather than a tech support rep or chatbot—would be better suited to provide that help.
“I knew that AI could bring an HR team to every small business, and we created DianaHR as a platform that could overlay Gusto and other HR specialty software,” said Bee, who crafted DianaHR as an independent layer that’s not tied to a specific payroll platform so that SMBs wouldn’t have to switch out all their existing software and processes.
DianaHR’s proprietary platform is a multi-agent orchestrator that automates the low-value, back-office tasks that typically bog SMB owners down, saving time and reducing costs by 60% or more. Instead of building an HR team, owners can rely on DianaHR to handle most of the heavy lifting. Each client is assigned a human DianaHR specialist who coordinates service and offers expertise as needed, but most functions are completely automated with DianaHR’s AI platform.
When a new client signs up for DianaHR, they’re assigned a human DianaHR specialist who is their main contact and fields requests and questions via email and Slack. Most tasks are automated by the platform based solely on those email and Slack requests. The DianaHR specialist answers questions and helps complete more complex tasks using the DianaHR platform. Clients don’t have a new software interface to learn and use, and it’s completely seamless, DianaHR said.
DianaHR is compatible with most HR tools, including ADP, Gusto, Rippling, Warp, and Every.io, so clients can keep their existing software in place.
“While most HR consultancies have very low customer satisfaction ratings—20% to 40% is common—DianaHR’s NPS [net promoter score] is 90-plus%, and to date we’ve had zero churn,” Bee said. “We’re proving that human-in-the-loop AI excels at HR tasks—this is the future of HR.”
More information about DianaHR can be found here.
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