Coralogix, an Israeli startup that provides full-stack observability and security platforms, has nearly doubled in three years since its final round of 2022, raising $115 million with a pre-valuation of more than $1 billion.
With the inflow of cash, startups are expanding their engineering foundations in India and developing AI agents.
The All-Equity and All-Primary Series E Round was led by California-based venture growth company Newview Capital and was founded by former Apple executives Avie Tevanian and Fred Anderson with participation from the Canada Pension Plan Investment Board and Nextequity.
Data observability is becoming increasingly important as more companies store and leverage data to take advantage of AI. However, not everyone in the company has the time or resources to thoroughly investigate the issue or make important decisions based on the data stream. Coralogix aims to solve this challenge with Olly, an AI observability agent.
Agents use a semantic layer that incorporates internal data, including metadata, and external sources such as information on the Internet, to help businesses understand complex issues such as identifying the cause of a service or solving the most common system errors using simple text prompts.
Trained to answer broader questions, not just what's wrong, AI agents can help customers if they want to know which features are causing the most frustration, how much these customers are paying, or who their account representatives are.
OLLY includes features such as anomaly detection, access monitoring, and real-time alerts to automate customer data observability. Developed by Coralogix's AI Research Center. This aims to expand through new capital.
Alongside AI agents, Coralogix provides AI companies with observability and guardrails, providing insights into model performance and response quality, security and governance. All this was brought about by the acquisition of Aporia in December 2024.
“We have the opportunity given the architecture that analyzes stream queries from the low cost of remotes. We are going to invest a lot there and build a bigger AI research centre,” Assalaf said.
The startup plans to leverage its Indian engineering hub for AI ambitions, aiming to invest around $100 million in the country over the next five years. The investment will expand Gurugram's office, hire more staff in Bengaluru and Mumbai, and build engineering, R&D and customer success teams.
Of the comprehensive division of nearly 550 employees, Kolalogix has around 250 in Israel and 100 in India. We plan to double the Indian employee base over the next three years.
“I think there's a really good fit between the engineering culture in Israel and the engineering culture in India, so it's very independent, very independent, to the type of engineering mission we think is very suitable to expand,” Assalaf told TechCrunch.
The South Asian market is also the second largest market for startups in terms of revenue and user base, with over 100 customers after the US, executives said.
Indian companies such as Postman, Jupiter Money, Meesho, Bookkmyshow, Bharatpe, Coindcx and Razorpay are among Coralogix's customers. It also serves banks and businesses, and is looking to use the Indian government as its next big client. Additionally, startups are expanding their domestic footprint with an eye on the acquisition of Indian startups.
“We've spoken about potential M&As to quite a few Indian companies, but nothing is actually met. It could be a very good and easy way to acquire a strong core team when thinking about expanding engineering,” Assaraf told TechCrunch.
In June 2022, Coralogix raised $142 million in the Series D round co-led by Advent International and Brighton Park Capital. Since then, Assaraf said it has not yet profitable, but it has grown seven times the revenues of its startups.
The startup that considers Datadog as a major competitor is aiming to apply for a US IPO with NASDAQ in three years.
“Our goal is to build this new architecture way of doing things and monitor remote stream queries, this new way of doing customer engagement, these new regions we are currently investing in, this new AI experience, how we monitor AI, how we use AI,” Assaraf said. After being able to show progress in these aspects, we will explore the IPO, he added.
The most recent round also saw participation from existing Coralogix investors, including Advent International, Brighton Park Capital, Revaia, Greenfield Partners, Red Dot Capital Partners, OG Venture Partners, Joule Capital Partners and Maor Investments.