Japan's human resources technology landscape is set for a new phase of growth and innovation following a major strategic investment. SmartHR, the country's leading cloud-native HR management platform, has received a US$96 million (JPY¥14.6 billion) strategic minority investment from global growth equity firm General Atlantic. The investment involves General Atlantic acquiring its stake from existing investor Coral Capital, which will remain a committed minority shareholder, signaling strong continued confidence in the company's trajectory.
SmartHR has secured a $96 million strategic minority investment from General Atlantic.
General Atlantic acquired the stake from Coral Capital, which remains a shareholder.
This marks General Atlantic's first growth equity investment in Japan.
SmartHR is Japan's leading HR tech platform, digitizing labor management and payroll.
The partnership will accelerate product development and strategic growth initiatives.
The investment underscores the significant potential for HR cloud software in Japan.
Founded in 2013, SmartHR has established itself as the dominant HR technology platform in Japan. Its cloud-based solution provides an all-in-one suite for talent and labor management, time and attendance, payroll, and government reporting. By digitizing and centralizing these mission-critical processes, the platform helps Japanese businesses reduce operational burdens, manage workforce data more efficiently, and enhance overall productivity and employee experience. The partnership with General Atlantic is aimed at advancing this mission through new product development, enriched customer engagement, and strategic mergers and acquisitions.
This investment is significant as it represents General Atlantic's first growth equity investment in the Japanese market. The firm brings a 45-year track record and specific expertise in scaling HR software businesses globally, with a portfolio that includes Gusto, Hibob, and PayFit. The collaboration will provide SmartHR with the resources and global perspective to capture the long-term trend towards digitization in a market that is still early in its adoption of cloud software solutions. Masato Serizawa, Chief Executive Officer of SmartHR, commented: “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.”
The transaction is a strong endorsement of SmartHR's market position and execution over the past decade. The company has maintained the number one share in Japan's labor management cloud market for seven consecutive years. Coral Capital, which became SmartHR's largest investor in 2017, will continue its support as a minority shareholder. James Riney, Founding Partner and CEO of Coral Capital, said: “This is a fantastic outcome for everyone involved... Since then, SmartHR has gone on to dominate the HR software market in Japan and continues to compound at an extraordinary pace.” Martín Escobari, Co-President at General Atlantic, added, “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.”
This strategic infusion of capital and expertise positions SmartHR to further solidify its leadership in Japan and potentially explore new horizons. The partnership highlights the growing global interest in Japan's tech ecosystem and the vast, untapped potential for cloud-based solutions to transform traditional business operations, starting with human resources.
About SmartHR
SmartHR is a cloud-based HR and labor management software that has maintained the no. 1 share in the labor management cloud market in Japan for seven consecutive years*. The platform digitizes and centralizes a wide range of HR and labor processes – from managing employee information, employment contracts, and onboarding, to attendance management and payroll calculations – consolidating employee data in a single secure location. In addition, SmartHR leverages this data through talent management functions, such as Performance Reviews, Employee Surveys, Personnel Placement Simulations, and Skill Management, enabling optimal team assignments and talent development to support data-driven human capital management. The app store service, SmartHR Plus, offers applications that integrate SmartHR with a variety of specialized external services across different business areas, allowing companies to enhance customization and achieve highly accurate and secure data integration. SmartHR contributes to improving corporate productivity and creating better working environments for everyone.
*Deloitte Tohmatsu MIC Research Institute, HR Tech Cloud Market: Current Status and Outlook – 2024 Edition, Labor Management Cloud Market / Shipment Value (FY2024 Forecast)
About General Atlantic
General Atlantic is a leading global investor with more than four and a half decades of experience providing capital and strategic support for over 830 companies since its establishment in 1980. General Atlantic leverages its patient capital, operational expertise, and global platform to support a diversified investment platform spanning Growth Equity, Credit, Climate, and Sustainable Infrastructure strategies. General Atlantic manages approximately $118 billion in assets under management, inclusive of all strategies, as of September 30, 2025, with more than 900 professionals in 20 countries across five regions.
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