Software-as-a-Service (SaaS) firm Atomicwork has secured $25 million in Series A funding led by Khosla Ventures and Z47 (formerly Matrix Partners), with additional participation from Battery Ventures, Blume Ventures, and Peak XV Partners. The funding comes amid increased investor interest in SaaS startups with strong growth potential and an AI roadmap.
Atomicwork plans to utilise the funding towards expanding its go-to-market efforts. The company also plans to enhance integration capabilities with enterprise systems and ensure its platform can handle large-scale deployments.
"We will be focussing on go-to-market expansion as well as on research and development on AI using the funds. We will also continue to spend on Agentic AI innovations within the firm for enterprises," said cofounder and CEO Vijay Rayapati to Moneycontrol.
Headquartered in San Francisco with additional offices in Singapore and India, the firm also plans to use the investment to support its growth and further improve its AI-driven IT service management platform.
Founded in 2022 by Rayapati, Kiran Darisi and Parsuram Vijayasankar, Atomicwork is an employee success solution that brings employees, IT systems, and HR operations together to drive business impact across any organisation.
Rayapati was the founder of SaaS firm Minjar in Bengaluru, which was acquired in 2018 by US-based Nutanix for an undisclosed amount. Darisi and Vijayasankar come from the Freshworks' founding team where Darisi was the VP and engineering and Vijayasankar was the cofounder of Freshworks.
Atomicwork is also now shifted its focus to agentic service management, aiming to modernize traditional IT service management (ITSM) tools that are no longer sufficient for the growing demands of global businesses.
"We have grown 10X since the inception and we expect to grow at a similar pace...With new demand coming in due to AI within IT businesses we are placed very well in the coming years," Rayapati added.
The company’s platform integrates an enterprise knowledge graph with agentic AI, designed to simplify IT workflows, manage incidents in real-time, and enable self-healing, thus allowing IT teams to focus on strategic business functions.
According to Rayapati the company’s technology is intended to revolutionize how businesses manage IT processes. “This investment validates our vision of a future where smarter IT teams drive business growth and companies are empowered by technology, not bogged down by it,” said Rayapati.
The company claims that its platform is already being used by companies like Zuora and Pepper Money to improve productivity and streamline IT services.
The funding comes at a time when India's startup ecosystem is signaling that the funding winter is finally thawing, with investors opening their wallets to back promising startups.
Just a few months ago, Whatfix raised $125 million in a funding round led by Warburg Pincus, with participation from SoftBank Group.
Pune-headquartered fintech SaaS firm Easebuzz is reportedly in advanced talks to raise Rs 200 crore, with Bessemer Venture Partners emerging as a key potential investor.
Kanu Gulati of Khosla Ventures highlighted the impact of Atomicwork’s AI technology on organizations. “Atomicwork’s AI agents can autonomously handle everyday IT services, allowing employees to focus on growing the business,” he said.
Neeraj Agrawal, General Partner at Battery Ventures, emphasized the transformative potential of Atomicwork’s approach to enterprise IT. “We are excited to be a part of the company’s journey as it continues to innovate,” he said.
In September 2023, the firm raised $11 million in its seed funding round led by Matrix Partners and Blume Ventures.
In September of 2024, the firm raised an additional $3 million in its seed funding round led by a group of global chief technology officers (CTOs) and chief information officers (CIO).
This brings the total raised to approximately $ 40 million till date.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
