DianaHR Raises $3.7M Seed to Tackle $100B HR Consulting Market for SMBs

DianaHR Raises $3.7M to Scale AI HR-as-a-Service for SMBs

DianaHR announced a $3.7M seed round led by SNR Ventures, with participation from General Catalyst, Y Combinator, and founders of Mercury, Twitch, and Dropbox. The company plans to grow its engineering and operations teams to accelerate its product roadmap, expand capacity, and serve more clients from its waitlist. Revenue has doubled each quarter since the product's release earlier this year.

"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."

Why HR Leaders Should Care

SMBs still spend 15+ hours a week on HR admin, compliance, payroll, and benefits questions. DianaHR targets that overhead with automation and a human-in-the-loop model that cuts costs by 60 percent or more while improving speed and accuracy. For HR teams, that means fewer manual tickets and more time for strategic work.

What DianaHR Is Building

Founder Upeka Bee, formerly Head of Engineering for Gusto HR, designed DianaHR as an independent layer that works with popular payroll and HR tools. "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. The platform is a multi-agent orchestrator that handles low-value, back-office tasks and routes edge cases to a human specialist assigned to each client.

How It Works

• Each client is assigned a DianaHR specialist as the main contact for requests and questions via email and Slack.
• Most tasks are automated directly from those messages-no new interface to learn for the client.
• The specialist steps in for complex workflows and approvals, using the DianaHR platform to complete tasks.
• DianaHR integrates with existing tools, so teams keep their current systems and processes.

Tool Compatibility

DianaHR works with ADP, Gusto, Rippling, Warp, and Every.io, among others. No platform switch is required, reducing change management and rollout friction.

Early Results

"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."

What's Next

The company will use the new funding to expand capacity and move more SMBs off the waitlist. For HR leaders supporting lean operations, the model offers a path to scale routine HR work without expanding headcount.

Learn more or join the waitlist: getdianahr.com

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