DianaHR, Founded by Ex-Gusto Engineering Lead, Raises Seed Round to Bring HR-as-a-Service to SMBs

Startup's platform automates most HR tasks, saving business owners 15+ hours a week and reducing costs by 60 percent

SAN FRANCISCO, Sept. 15, 2025 (GLOBE NEWSWIRE) -- DianaHR, which offers the first AI-powered HR-as-a-Service platform for SMBs, announced today that it has raised a $3.7M seed round led by SNR Ventures with participation from General Catalyst, Y Combinator and unicorn founders including founders of Mercury, Twitch and Dropbox. The company will use the funds to expand its engineering and operations teams, so it can accelerate its product roadmap, expand its capacity, and take on more clients from its waitlist. DianaHR's revenue has doubled each quarter since the release of its product 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."

According to DianaHR founder Upeka Bee, business owners want to grow their business and keep overhead low, not deal with HR and payroll tasks. DianaHR helps them do that. Bee, the former Head of Engineering for Gusto HR, recognized that many SMB owners still spend 15+ hours a week on HR tasks, and that an HR expert (rather than a tech support rep or chatbot) would be better suited to provide that help. "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.

DianaHR’s proprietary platform is a multi-agent orchestrator that automates the low-value, back-office tasks that typically bog SMB owners down, saving time and reducing costs by 60 percent or more. Instead of building an HR team, owners can rely on DianaHR to handle most of the heavy lifting. Each client is assigned a human DianaHR specialist who coordinates service and offers expertise as needed - but most functions are completely automated with DianaHR's AI platform.

How DianaHR Works:
When a new client signs up for DianaHR, they are assigned a human DianaHR specialist who is their main contact and fields requests and questions via email and Slack. Most tasks are automated by the platform based solely on those email and Slack requests. The DianaHR specialist answers questions and helps complete more complex tasks using the DianaHR platform. Clients don't have a new software interface to learn and use. It's completely seamless.

DianaHR is compatible with most HR tools including ADP, Gusto, Rippling, Warp and Every.io - so clients can keep their existing software in place.

"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."

About DianaHR
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. Join the waitlist at getdianahr.com.

Media contact:
Gina Rezendes
Big Swing
617-640-9278
gina@big-swing.com

A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/3ef84901-b098-417f-852c-4d717ea63b11

Upeka Bee, Founder and CEO of DianaHR

Bee, the former Head of Engineering at Gusto HR, announced today that DianaHR, which offers the first AI-powered HR-as-a-Service platform for SMBs, has raised a $3.7M seed round.

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