SmartHR has secured a $96 million strategic minority investment from global growth investor General Atlantic, marking one of the most significant recent transactions in Japan’s HR technology sector and representing General Atlantic’s first growth equity investment in the country. The stake was acquired from Coral Capital, which remains a committed minority shareholder.
Founded in 2013, SmartHR has become a market leader in Japan’s HR technology landscape with a cloud-based platform that manages employee records and digitizes workflows across talent and labor management, time and attendance, payroll, and government reporting. The company’s products help organizations streamline operations, centralize workforce data, increase productivity, and improve the employee experience while supporting Japan’s broader digital transformation of its labor ecosystem.
The newly announced partnership brings together SmartHR’s established domestic leadership with General Atlantic’s global expertise in scaling HR software companies. The firm maintains a long-standing portfolio of HR technology investments, including ATOSS Software, Gusto, Hibob, PayFit, and Staffbase. Alongside Coral Capital, both investors plan to collaborate closely with SmartHR’s management team to accelerate product innovation, pursue strategic partnerships, strengthen customer engagement, and explore complementary M&A opportunities. The investment also aims to enhance the company’s go-to-market capabilities as it continues expanding its reach across Japanese enterprises.
SmartHR has maintained the number one share in Japan’s labor management cloud market for seven consecutive years, according to Deloitte Tohmatsu MIC Research Institute. Its platform consolidates HR processes, including employee information, employment contracts, onboarding, and payroll. The company also provides talent management tools, including performance reviews, surveys, personnel placement simulations, and skill management. SmartHR Plus, the company’s integrated app store, extends these capabilities by connecting the platform to specialized external services to support secure, highly customizable workflows.
General Atlantic’s entrance into the Japanese market comes amid growing demand for digital tools that modernize workforce management, particularly as cloud software adoption increases across Japan. The firm highlighted both SmartHR’s strong execution and the broader wave of technological innovation emerging throughout the country. Coral Capital’s continued involvement reflects its long-standing partnership with SmartHR, dating back to its early investment through Japan’s first SPV of its kind in 2017.
As SmartHR accelerates its next phase of growth, the company intends to use the new partnership to expand its product ecosystem, support customer-centric innovation, and promote more efficient and inclusive workplaces across Japan.
KEY QUOTES:
“We are extremely pleased to welcome General Atlantic as our new strategic partner. Backed by their extensive global experience and demonstrated history of scaling HR software businesses, we are confident that they will be a powerful force in accelerating our next stage of growth. Through this partnership, we will continue to drive greater corporate productivity and help create more inclusive and fulfilling workplaces for everyone.”
Masato Serizawa, Chief Executive Officer and Board Director, SmartHR
“SmartHR is dedicated to transforming how Japanese enterprises manage and support their people. The Company has prioritized execution and agility to develop a fully digital, highly scalable platform that addresses mission-critical HR needs for its customers. With the Japanese market still early in its adoption of cloud software solutions, we believe SmartHR has significant opportunity to capture the long-term trend towards digitization. On a wider scale, we are energized by the new wave of talented founders and technological innovation in Japan and look forward to supporting the country’s exciting entrepreneurial ecosystem.”
Martín Escobari, Co-President and Head of Global Growth Equity, General Atlantic
“This is a fantastic outcome for everyone involved. SmartHR is a company that’s very close to our hearts. Back in 2017, we became its largest investor – going all-in through an SPV, which was the first of its kind in Japan at the time. Since then, SmartHR has gone on to dominate the HR software market in Japan and continues to compound at an extraordinary pace. We’re thrilled to partner with General Atlantic and continue supporting the Company’s remarkable journey.”
James Riney, Founding Partner and CEO, Coral Capital
