DianaHR raises $3.7m to expand AI-powered HR platform

September 16, 2025

DianaHR, a startup founded by former Gusto head of engineering Upeka Bee, has raised $3.7m in a seed round to expand its AI-powered HR-as-a-Service platform for small and medium-sized businesses (SMBs).

The investment was led by SNR Ventures, with participation from General Catalyst, Y Combinator, and several unicorn founders, including the creators of Mercury, Twitch and Dropbox.

The company, which launched its product earlier this year, offers SMBs a platform that automates the bulk of HR tasks while keeping a human expert in the loop. DianaHR’s system handles functions such as payroll, compliance, benefits and onboarding, helping clients save more than 15 hours per week and reduce HR costs by up to 60%.

The fresh funding will allow DianaHR to accelerate its product roadmap, strengthen its engineering and operations teams, and scale capacity to take on new clients currently on its waitlist. The firm has reported strong traction so far, with revenues doubling every quarter since launch.

SNR Ventures founder Kevin Mahaffey said, “DianaHR’s main competition are the 54,000 HR consultancies in the US who alongside payroll software capture $100B in spending.

“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.”

DianaHR founder Upeka Bee said, “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.”

The company emphasises that its approach offers flexibility by working with existing HR tools such as ADP, Gusto, Rippling, Warp and Every.io, meaning SMBs do not need to overhaul their systems to use the service.

Bee added, “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. We’re proving that human-in-the-loop AI excels at HR tasks – this is the future of HR.”