Coralogix raises $200M betting AI agents need constant monitoring as autonomous systems scale

Coralogix raises $200M on bet that someone needs to watch the AI agents

Coralogix, a Boston-headquartered software monitoring startup founded in Israel, has raised $200 million in a new funding round, betting that the rise of AI agents will drive demand for a new generation of tools to monitor, troubleshoot, and manage increasingly autonomous software systems. The Series F financing comes just 11 months after Coralogix raised $115 million in a Series E round, a pace that reflects just how quickly investor appetite for AI infrastructure companies has accelerated. The new round values the startup at $1.6 billion post-money and was led by Advent and the Canada Pension Plan Investment Board (CPPIB), with participation from Greenfield Partners and Brighton Park Capital. The company has now raised a total of $550 million to date. The investment comes as software companies race to adapt to the rise of AI agents, software systems that can autonomously write code, investigate problems, and complete tasks that would previously have required a human engineer. Coralogix is among a growing number of infrastructure firms betting that as AI systems move into production, demand will rise for tools that can monitor their behavior, troubleshoot failures, and provide the operational data needed to keep them running reliably. (The more autonomous software you deploy, the more you need to know when something goes wrong and why.) Founded in 2014, Coralogix helps companies monitor the health and performance of software systems by collecting and analyzing operational data such as logs, metrics, and traces -- essentially a continuous record of what a software system is doing and how it's behaving. The platform is used by more than 5,000 customers worldwide, including IBM, Tradeweb, and JFrog, to detect outages, investigate incidents, and optimize applications. The observability industry, where Coralogix competes with the likes of Datadog, New Relic, and Splunk, is being reshaped by the rise of AI. Vendors are increasingly embedding AI into monitoring and incident-response workflows as enterprises deploy more AI-powered applications and agents. The shift is already changing how customers interact with Coralogix's platform, co-founder and CEO Ariel Assaraf (pictured above, right) said in an interview. More than half of the startup's enterprise customers now use either its AI agent, Olly, or their own AI models through command-line and agentic interfaces to investigate incidents and query operational data, he said. "The interface layer is slowly getting eroded," Assaraf told TechCrunch, observing that engineers are increasingly interacting with software through AI assistants and command-line tools rather than traditional dashboards. "Most of the usage is going to be around, 'How do I connect my LLM to this? How do I operate this through my CLI?'" In plain terms, his customers are less interested in logging into a dashboard and more interested in asking an AI assistant what's wrong. The shift has coincided with strong growth for Coralogix. The startup grew revenue by more than 60% over the past year and now counts about 30 customers spending more than $1 million annually, Assaraf said, as it expands further into the enterprise market. The company surpassed $100 million in annualized revenue more than a year ago, Assaraf added, though he declined to disclose current figures The startup employs more than 600 people globally, with about 100 based in India, home to its third-largest office after the U.S. and Israel. The India operation, Assaraf said, has evolved into a regional hub supporting customers across Asia while helping Coralogix expand into large domestic enterprises, including financial institutions. Coralogix did not raise because it needed additional runway, Assaraf said, adding that the funding would be used to accelerate investment in AI-focused products, security offerings and global expansion. "In the AI era, execution and speed matter more than any point-in-time valuation," he said. "We wanted to accelerate, expand, and take a further step into this AI game that we believe we're leading in our space." Coralogix does not currently expect to raise additional capital and is working toward profitability over the next few years, Assaraf said. The company is also preparing to operate with the financial discipline of a public company, he said, though he stopped short of committing to a timeline for an initial public offering.

Observability firm Coralogix deepens India bet as AI security demand rises

Israeli observability platform Coralogix is significantly expanding its operations in India, a key growth market, as enterprises adopt AI-driven digital infrastructure. The company, which has raised $200 million in new funding, aims to make India its most important office outside Israel and the US, leveraging the country's massive scale and advanced tech ecosystem. India has emerged as a key growth market for Israeli observability and data security platform Coralogix, with the company expanding its operational footprint in the country as enterprises scale AI-led digital infrastructure, Ariel Assaraf, cofounder and chief executive of Coralogix, told ET. The company, which counts Indian firms such as Razorpay, Meesho, BharatPe, CoinDCX, Delhivery, Jupiter Money, and BookMyShow among its customers, is positioning India as a major hub outside Israel and the US. "India has some very unique characteristics. Companies here operate at a scale that is rare globally. Even a small percentage of failures can impact hundreds of thousands of users," Assaraf said, speaking about India's growth plans. Coralogix on Wednesday announced it has raised $200 million in a round co-led by Advent, Canada Pension Plan Investment Board (CPPIB), and Greenfield, as enterprises globally grapple with surging AI-driven data volumes and growing cybersecurity risks. Existing investor Brighton Park Capital also participated in the round, taking the company's total funding to $550 million. India is becoming strategically important not just from a customer standpoint but also operationally, Assaraf added. Coralogix currently has more than 100 employees in Gurugram across engineering, sales, security research, and support functions, and plans to continue hiring. The company has also moved parts of its Asia operations into India, with teams in Gurugram supporting customers across Singapore, Japan, and Indonesia. "Our goal is to make India the most important office for Coralogix outside Israel and the US," Assaraf said. Speaking about Indian startups, Assaraf said often the biggest challenge is expanding globally because the domestic market itself is so massive and diverse. "Israel-based companies like ours start globally from day one because Israel is a small market. Indian companies, however, already have enormous scale domestically across multiple customer personas and languages," he added. Assaraf believes there is huge opportunity for Indian technology companies globally because of how advanced and cost-efficient the ecosystem has become. Coralogix's latest funding comes amid rising adoption of AI agents and autonomous systems, which are generating significantly larger volumes of telemetry and operational data than traditional cloud applications. AI drives observability demand Founded in Israel, Coralogix provides observability infrastructure that helps enterprises monitor applications, detect outages, analyse system behaviour, and automate cybersecurity operations. The company competes with global players such as Datadog, Splunk, and New Relic in the fast-growing AI observability market. Assaraf said enterprises are increasingly looking for autonomous observability and security systems that can investigate incidents, detect threats, and recommend fixes with minimal human intervention. "Customers no longer want to manually investigate tickets or analyse security data. The goal now is fully autonomous operations," he said. He added that today, "Customers can get full coverage, low-cost ingestion, infinite retention, and run AI agents on top of that data layer -- whether it is their own or Olly, our agent layer -- to get deeper insights with less human intervention.". The company said the fresh capital will be used to expand its AI-native observability platform, strengthen security operations, and scale telemetry infrastructure globally. Coralogix says it processes petabytes of production data daily across the globe and serves more than 5,000 customers worldwide, including IBM, Tradeweb, and JFrog, the company said. One petabyte equals roughly 1 million gigabytes.