DianaHR, a San Francisco-based startup offering the first AI-powered HR-as-a-Service platform for small and medium-sized businesses (SMBs), has secured a $3.7 million seed funding round. Founded by former Gusto Head of Engineering Upeka Bee, the company aims to streamline HR tasks, saving business owners significant time and costs while enhancing accuracy and efficiency.
The $3.7 million seed round, led by SNR Ventures and supported by General Catalyst, Y Combinator, and founders of Mercury, Twitch, and Dropbox, will fuel DianaHR’s expansion. The funds will bolster engineering and operations teams to accelerate the product roadmap, increase capacity, and onboard more clients from its waitlist. Since its launch earlier in 2025, DianaHR’s revenue has doubled each quarter, reflecting strong market demand for its innovative HR solution.
“DianaHR’s main competition are the 54,000 HR consultancies in the US who alongside payroll software capture $100B in spending,” said SNR Ventures founder Kevin Mahaffey. “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.”
Founded by Upeka Bee, DianaHR addresses the burden of HR tasks that consume over 15 hours weekly for SMB owners. Unlike traditional HR consultancies, which often have low customer satisfaction (20-40% NPS), DianaHR’s platform achieves a 90%+ NPS score with zero churn. Its multi-agent orchestrator automates repetitive back-office tasks like payroll, compliance, benefits, onboarding, insurance, and 401k management, reducing costs by 60% or more.
“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.
Each client is assigned a human specialist who manages requests via email and Slack, while the platform automates most tasks seamlessly. DianaHR integrates with major HR tools like ADP, Gusto, Rippling, Warp, and Every.io, ensuring compatibility without requiring businesses to overhaul existing systems.
DianaHR’s human-in-the-loop AI model sets it apart in a market dominated by traditional consultancies and rigid software solutions. By combining automation with expert oversight, the platform delivers faster response times and higher accuracy, eliminating the need for in-house HR teams or costly consultants. “While most HR consultancies have very low customer satisfaction ratings - 20-40 percent is common - DianaHR’s NPS score is 90+ percent and to date we’ve had zero churn,” said Bee. “We’re proving that human-in-the-loop AI excels at HR tasks - this is the future of HR.”
The company targets the 1.4 million U.S. SMBs with at least 10 employees, offering a scalable solution to streamline operations and reduce overhead. Its waitlist-driven model indicates strong early adoption, positioning DianaHR to redefine HR management for growing businesses.
This funding and innovative platform mark DianaHR as a key player in the HR-as-a-Service space, leveraging AI to transform how SMBs manage critical back-office functions while maintaining flexibility and cost efficiency.
DianaHR offers the first AI-powered HR-as-a-Service platform for the 1.4 million SMBs with at least 10 employees. Today, SMB owners spend 15+ hours a week struggling with back-office HR tasks such as managing software, payroll, compliance, benefits questions, onboarding, insurance and 401k. DianaHR, a human-in-the-loop AI that integrates with existing HR tools, combines AI automation with a team of professional operators to handle all that, eliminating the need for HR teams and expensive consultants while improving response times and accuracy.
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