Atomicwork Secures Funding from Khosla for AI IT Solution

Atomicwork Secures $25 Million to Revolutionize Enterprise Support with AI Agents

Atomicwork, a software-as-a-service (SaaS) company founded by entrepreneurs of Indian origin, has successfully completed a new funding round, securing $25 million in investment. This funding, spearheaded by Khosla Ventures, will be used to accelerate the company’s growth and broaden the deployment of its AI agents. These agents are designed to streamline communication and service delivery within organizations.

Addressing Challenges in Enterprise Support

As businesses increasingly embrace digital technologies, a significant challenge arises: providing employees with rapid support and effortless access to crucial information. While IT service management (ITSM) solutions aim to address this need, their implementation often requires substantial time and specialized expertise.

The advent of artificial intelligence offers a potential solution, but many chatbot-style experiences still rely on underlying enterprise systems like ServiceNow, BMC Remedy, or Jira Service Management. This dependence can limit flexibility and increase complexity.

Atomicwork: A Modern, AI-Driven Alternative

Atomicwork presents a different approach, offering a contemporary, AI-driven experience that bypasses the need for these incumbent systems. The platform enables enterprises to automate service workflows, allowing employees to easily find answers or access services from departments such as HR, IT, and finance.

These workflows integrate seamlessly with popular applications including Microsoft Teams, Slack, Intune, Okta, Notion, Salesforce, and GitHub, enhancing accessibility and convenience.

A "Full-Stack AI ServiceNow"

Vijay Rayapati, co-founder and CEO of Atomicwork, describes the company’s offering as a “full-stack AI ServiceNow.” The target market consists of large global companies generating approximately $1 billion in annual revenue and employing at least 1,000 individuals.

Rayapati emphasizes a fundamental architectural difference between Atomicwork and traditional ITSM platforms like ServiceNow, highlighting the advantages of modern development practices.

Rapid Implementation and Universal Agent Support

Unlike the multi-year implementation cycles often associated with ServiceNow and similar platforms, Atomicwork can be deployed in as little as two weeks. The startup also provides a universal agent to assist organizations in establishing automated workflows.

Founding and Evolution

Atomicwork was established in 2022 by Rayapati, previously the founder of Minjar, a cloud management platform acquired by Nutanix in 2018. He was joined by Kiran Darisi and Parsuram Vijayasankar, both founding members of Freshworks.

Initially, the company focused on an AI assistant for automating enterprise workflows. However, as both demand for automation and AI capabilities grew, Atomicwork introduced its agentic service management platform late last year.

Context-Aware AI Agents for Enhanced Task Performance

This platform features context-aware AI agents capable of analyzing diverse data sources to execute tasks across various enterprise applications. Examples include resetting work email passwords, relaying information during sales calls, and accessing design assets on Figma, all through platforms like Microsoft Teams or Slack.

Designed for Both Humans and AI

While ServiceNow and other providers also allow for the development of AI agents, Rayapati asserts that Atomicwork has taken a forward-thinking approach by designing its software to accommodate both human and “non-human” users – that is, AI agents themselves.

“When employees require assistance, they typically submit a ticket. We are creating an architecture where agents can proactively request help, mirroring the process used by human employees,” Rayapati explains.

Leveraging Leading LLM Models

Atomicwork utilizes large language models (LLMs) from prominent providers such as OpenAI, Anthropic, Cohere, and Meta. It also incorporates its own proprietary small models for tasks like intent detection, routing, and slot filling, optimizing workflow automation.

Data Security and Compliance

Recognizing the importance of data security in AI deployments, Atomicwork offers enterprises the option to control their data encryption keys or integrate their own model endpoints. The company has also established agreements with AWS and Azure to limit data retention and training, and holds multiple compliance certifications.

Investment Details and Future Plans

The $25 million Series A funding round was co-led by Khosla Ventures and Z47 (formerly Matrix Partners India), with participation from Battery Ventures, Blume Ventures, and Peak XV Partners. This follows a $3.3 million round in September and a $11 million seed round in 2023, bringing the total funding raised to over $38 million.

Currently, Atomicwork serves eight customers, primarily located in the U.S., including Ammex Corporation, Zuora, and Pepper Money.

The new investment will be directed towards expanding the customer base, enhancing AI research and development, strengthening platform engineering, and forging strategic partnerships with companies like Oracle and SAP to broaden integrations.

Rayapati indicated that the company’s valuation is approximately five times the total capital raised in this latest funding round.

Team and Growth

Atomicwork currently employs a team of over 60 individuals, with more than 50 based in India.

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