Israeli data analytics startup Coralogix has raised $200 million in its Series F round, led by Advent International, the Canada Pension Plan Investment Board and Greenfield, with participation from Brighton Park Capital. With the new funds, the company plans to allocate a fifth, or roughly $40 million, to its India business.
Coralogix had entered India back in 2020 and at the time had announced it will invest $30 million over the course of three years into the country. "Now, India's revenue is in the tens of millions, and from the fundraise we'll be deploying more capital into the country," said Coralogix co-founder and chief executive Ariel Assaraf in an interview with Mint.
With its increased focus on India, the Israeli startup is hiring for multiple roles, including sales, account management, forward deployed engineers, observability & migration experts, security research and its security operations center for its cybersecurity arm, Snowbit. The company currently has 150 employees in India and plans to grow that number to over 200 over the next three years.
AI adoption drives demand
Several international artificial intelligence (AI) and AI-adjacent companies are showing interest in India as enterprise businesses in the country accelerate adoption of the technology.
Enterprise businesses generally work across different environments and data repositories. While deploying AI, companies often need to find a way to get the data to ‘talk’ to each other in order to enable analytics and improve efficiencies. Data observability platforms such as Coralogix essentially give enterprises visibility on the reliability and accuracy of their data constantly.
Currently, India contributes around 20% to the company's overall revenue. While the US continues to be Coralogix's primary market, followed by Europe, Assaraf said that the India business is outgrowing the latter. “It's growing 50% year-on-year.”
When Coralogix first entered India, the company primarily worked with tech-first businesses in the streaming sector—firms such as SonyLiv and Zee as well as Jio.
More recently, the company has started chasing larger enterprise customers who are treating AI observability as a critical requirement for deployment of the technology. “We're definitely seeing an uptick of interest from those businesses,” Assaraf said.
Enterprise demand deepens
With AI adoption moving from pilot to critical in India, companies have started moving faster in closing sales cycles, a trend that Assaraf said Coralogix is also seeing playing out in its India business. “Enterprises here have made a huge step forward in their speed and efficiency when it comes to closing out contracts," he said. "People used to look at India as a 12-month enterprise sales cycle; we're seeing a lot more advancement there. Companies are willing to make big decisions and move fast."
The company recently brought on board Kotak's digital banking arm Kotak811, as a customer, which they closed within a two-three month period. The company is now targeting all of India's major financial services players, including banks and insurers, as well as healthcare firms and hospitals.
Nearly a year ago, the eight-year-old startup had raised $115 million in its Series E round, with a significant portion going towards the India business.
The equity infusion from last year's round, led by San Francisco-based NewView Capital, had boosted the company's valuation to over $1 billion, making it a unicorn. In 2022, the company had raised $142 million in its Series-D round, led by Advent International and Brighton Park Capital.