CodeKarma raises $2.5 million in pre-seed round from Prosus, Accel, Xeed Ventures

CodeKarma raises $2.5 million in pre-seed round from Prosus, Accel, Xeed Ventures

CodeKarma, a software productivity platform that brings real-time production intelligence into code development, has raised $2.5 million in a pre-seed round led by Prosus, Accel, and Xeed Ventures. SenseAI Ventures and Stargazer Ventures also participated.

The Bengaluru-based startup is building what it calls a “closed-loop” software development platform—one that integrates production insights directly into developer workflows, helping identify risks, eliminate tech debt, and continuously improve code quality. The funding will be used to accelerate product innovation, expand into new enterprise verticals, and hire engineering talent. A key focus will be scaling operations in the US.

Founded by Ananth Vanchi, CodeKarma’s platform is designed for an era where code is increasingly AI-generated, and systems are growing more complex and harder to manage. By embedding production data into development environments like Cursor and Copilot, it aims to help both human developers and AI co-pilots write cleaner, smarter, and more efficient code.

“With the rapid adoption of AI-generated code, today’s systems are increasingly complex and often lack real-world context,” said Vanchi. “CodeKarma bridges this gap by embedding deep production insights into the developer’s environment, empowering both humans and AI to create self-improving software.”

Subrata Mitra, Partner at Accel, said, “CodeKarma is pioneering a fundamentally new approach to developer productivity as AI reshapes software development. Their platform positions them to become a critical infrastructure layer for all engineering teams.”

Unlike traditional observability or static analysis tools, CodeKarma provides dense, deployment-grounded insights within the IDE itself—particularly relevant for high-change environments like fintech, e-commerce, and logistics. Its long-term ambition: to power autonomous software systems that can self-monitor, self-correct, and self-optimize in real time.

"We are excited to support CodeKarma as they build a new category of developer tools purpose-built for this emerging paradigm," said Dhruv Gupta, Investor, Prosus.

"As AI accelerates software creation, the cost of unmanaged complexity, especially tech debt, will rise sharply. CodeKarma addresses this challenge by creating a persistent relay between production and development, delivering deployment-grounded intelligence that empowers both human and AI coders," he added.

With AI rewriting how code is written and maintained, CodeKarma is positioning itself as a foundational layer in the next generation of developer tools—built not just for productivity, but for continuous learning and adaptation.