Coralogix, an Israeli startup offering a full-stack observability and security platform, has raised $115 million at a pre-money valuation of over $1 billion, almost doubling in three years from its last round in 2022.
With the influx of cash, the startup is looking to expand its engineering base in India and develop its AI agent.
The all-equity and all-primary Series E round is led by California-based venture growth firm NewView Capital, with participation from the Canada Pension Plan Investment Board and NextEquity, the venture firm founded by former Apple executives Avie Tevanian and Fred Anderson.
Data observability has become increasingly important nowadays as more companies store and leverage data to capitalize on the benefits of AI. However, not everyone in a company has the time or resources to thoroughly investigate an issue or make an important decision based on their data stream. Coralogix aims to solve this challenge with its AI observability agent, Olly.
The agent utilizes a semantic layer that incorporates internal data, including metadata, along with external sources, such as information available on the internet, to assist companies in understanding complex issues, such as identifying the causes of slow service or resolving the most common system errors, by using simple text prompts.
Trained to answer broader questions than just what is going wrong, the AI agent can help customers if they want to know which feature is causing customers the most frustration, how much these customers are paying, or who their account representative is that can work with them, Coralogix co-founder and CEO Ariel Assaraf said in an interview.
Olly includes features such as anomaly detection, access monitoring, and real-time alerts to automate data observability for customers. It was developed by Coralogix’s AI research center, which it now aims to expand through its new capital.
Alongside its AI agent, Coralogix provides observability and guardrails to AI companies, offering them insights into the performance of their models, as well as the quality, security, and governance of their responses. All this came through Aporia’s acquisition in December 2024.
“There’s an opportunity for us, given our architecture of analyzing stream query from remote, lower costs. We’re going to invest a lot there and build out the AI research center bigger,” Assaraf said.
The startup plans to leverage India’s engineering base for its AI ambitions, aiming to invest about $100 million in the country over the next five years. The investment is planned to expand its office in Gurugram and hire more staff in Bengaluru and Mumbai to build engineering, R&D, and customer success teams.
Of its overall headcount of nearly 550 employees, Coralogix has about 250 people in Israel and 100 in India. It plans to double the Indian employee base over the next three years.
“Because we see just a really good fit between the Israeli engineering culture and Indian engineering culture, it’s a get-it-done, very independent, very committed to the mission type of engineering that we see a very good fit for us to expand into,” Assaraf told TechCrunch.
The South Asian market is also the startup’s second-largest market in terms of revenue and user base, with over 100 customers, after the U.S., the executive said.
Indian companies such as Postman, Jupiter Money, Meesho, BookMyShow, BharatPe, CoinDCX, and Razorpay are among Coralogix’s customers. It also serves banks and enterprises and is looking to tap the Indian government as its next big client. Furthermore, the startup is eyeing the acquisition of Indian startups to expand its footprint in the country.
“We have spoken to quite a few Indian companies about the potential M&A, but nothing has really been fulfilled. It could be a very good and easy way for us to get a strong core team as we think about expanding our engineering,” Assaraf told TechCrunch.
In June 2022, Coralogix raised $142 million in a Series D round co-led by Advent International and Brighton Park Capital. Since then, Assaraf said the startup has seen 7x growth in its revenues, although it’s not yet profitable.
The startup, which views Datadog as its key competitor, aims to file for a U.S. IPO on Nasdaq in three years.
“Our goal is we build this new way of architecture, analyzing stream query from remote, this new way of customer engagement, these new geographies that we’re invested in now, also this new AI experience, how you monitor AI and how you use AI to monitor,” Assaraf said. After it can show progress on these fronts, it will explore an IPO, he added.
The latest round also saw participation from Coralogix’s existing investors, including Advent International, Brighton Park Capital, Revaia, Greenfield Partners, Red Dot Capital Partners, O.G. Venture Partners, Joule Capital Partners, and Maor Investments.