The Israeli startup Coralogix, which offers a full-stack observability and security platform, has now raised $115 million in funding. This new Series E round was done at a pre-money valuation of over $1 billion, almost doubling in three years. The all-equity and all-primary funding round was led by the California-based venture growth firm known as NewView Capital. It also saw participation from the Canada Pension Plan Investment Board and also from the venture capital firm called NextEquity. With this significant new influx of cash, the startup is now looking to expand its engineering base in the country of India. It also plans to further develop its AI agent.
Data observability has become increasingly important for businesses as more companies store and leverage data to capitalize on the benefits of AI. Coralogix aims to solve the challenge of analyzing this data with its advanced artificial intelligence observability agent, which is named Olly. The agent utilizes a sophisticated semantic layer that incorporates internal data, including metadata, along with various different external data sources. It is designed to assist companies in understanding complex issues, such as identifying the causes of slow service or system errors. Trained to answer broader questions, the AI agent can help customers identify which product feature is causing the most user frustration.
The startup now plans to leverage India’s large engineering base for its ambitious artificial intelligence development goals and future projects. They are aiming to invest about $100 million in the country of India over the course of the next five years. This significant investment is planned to expand its current office in Gurugram and also to hire more staff in Bengaluru and Mumbai. These new teams will build out the engineering, R&D, and also the customer success capabilities for the company in the region. The South Asian market is also the startup’s second-largest market in terms of both its revenue and its overall user base.
Since raising its Series D funding round in June 2022, Coralogix has seen a seven-fold growth in its total revenues. However, despite this very rapid and significant growth, the promising startup is not yet profitable, according to its CEO. The company, which now views the public company Datadog as its key competitor, aims to file for a U.S. IPO on Nasdaq. The company plans to achieve this initial public offering within the next three years, after showing more progress on its platform. Their goal is to grow annual recurring revenue to eight digits and expand from tens of customers to a three-digit number.
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