Rocketlane, an artificial intelligence(AI)-powered professional services automation (PSA) platform, has raised $60 million in its Series C funding round led by US-based private equity firm Insight Partners.
The Chennai-based startup said it will use the fresh capital to accelerate development of Nitro, its agentic execution platform that helps professional services teams independently plan and complete tasks, and to grow its sales and outreach to larger enterprise clients.
The IT services industry has attracted venture capital and private equity investment due to its AI capabilities. They are bullish on AI, believing that the technology can perform the work of traditional IT firms faster, and with less reliance on manpower.
Large venture capital investors like Lightspeed Venture Partners as well as Bessemer Venture Partners have been writing cheques to startups that seek to disrupt specific areas of what the firms in the sector do currently. India's largest private equity player, Multiples Alternate Asset Management, has also shifted gears to focus on AI-powered mid-market companies.
"Five years ago, SaaS was optimizing for product-led growth," said Srikrishnan Ganesan, chief executive and co-founder of Rocketlane, in a statement. "But implementing AI and driving adoption and outcomes in the enterprise has turned out to be harder, leading to buzz around 'services-led growth,' with professional services teams, forward deployed engineers, and agent PMs (product managers) becoming the new heroes."
Growth and investor outlook
The funding arrives as the professional services automation software market enters a steep growth curve.
The global PSA software market was valued at approximately $12.4 billion in 2024 and is projected to reach $40.25 billion by 2033, at a compounded annual growth rate of 14.7%, according to Grand View Research.
Insight Partners' Apoorva Goyal cited the company's traction within the firm's own portfolio as a signal of confidence. "Rocketlane's AI-first platform enables professional services teams to scale their impact without scaling headcount. We're proud to back a company that more than 25 of our portfolio companies already trust," Goyal said.
Rocketlane's funding round shows that while there is enterprise demand for AI tools, companies are now increasingly wanting the technology's deployment in many other areas. According to Gartner, global spending on IT services is projected to reach $1.9 trillion, reflecting the growing pressure on services teams to operationalize AI investments at scale.
With the latest funding round, the company has raised a total of $105 million. The company previously raised a $24 million Series B in 2024, co-led by 8VC, Matrix Partners India, and Nexus Venture Partners. Rocketlane currently serves over 750 companies across the world, including Glean, Intercom and Notion.